Type
Internal restructuring
Country
Hungary
Region
Location of affected unit(s)
Countrywide
Sector
Public Administration And Defence
Public Administration And Defence; Compulsory Social Security
Public Administration And Defence; Compulsory Social Security
84 - Public administration and defence; compulsory social security

373 - 800 jobs
Number of planned job losses
Job loss
Announcement Date
1 August 2006
Employment effect (start)
Foreseen end date
31 December 2007

Description

20% of the workforce will be laid off at the 20 County Employment offices and the 173 branch offices of the National Employment Service across Hungary in the course of 2006 and 2007. The employment centres administer allowances for the unemployed, provide services for job seekers and operate job creation services. The dismissals form part of the efforts of the recently re-elected MSZP-SZDSZ (Hungarian Socialist Party - Alliance of Free Democrats) coalition government to streamline the entire public administration system. 10% of the workforce, 373 employees will be dismissed in 2006. 130 people will be dismissed directly (40 out of whom were employed as pensioners), while the remaining 243 employees will be subject to other job reduction measures (including early retirement, special employment programme, etc.). Trade unions in the sector requested that dismissals at the employment centres do not take place until 1 January 2007 as a result of an increased workload due to redundancies in the entire public administration. The government, however, plans to proceed with the dismissals in 2006 and heads of the employment centres have already initiated negotiations on local level about the restructuring. A special branch of the Trade Union of Hungarian Civil Servants and Public Service Employees (Magyar Köztisztviselők és Közalkalmazottak Szakszervezete, MKKSZ) representing employees in employment administration has set up a strike committee.


Sources

  • 3 August 2006: Magyar Nemzet
  • 1 August 2006: Magyar Nemzet

Citation

Eurofound (2006), Munkaügyi központok és kirendeltségek, Internal restructuring in Hungary, factsheet number 63911, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/63911.