Type
Internal restructuring
Country
Hungary
Region
Kozep-Magyarorszag; Kozep-Magyarorszag; Budapest
Location of affected unit(s)
Budapest
Sector
Transportation / Storage
Land, Water And Air Transportation
Land Transport And Transport Via Pipelines
49.39 - Other passenger land transport n.e.c.

800 jobs
Number of planned job losses
Job loss
Announcement Date
7 April 2007
Employment effect (start)
7 July 2007
Foreseen end date

Description

The new CEO of Budapest Transport Company (Budapesti Közlekedési Vállalat, BKV) is considering a mass redundancy of more than 1000 employees, depending on the review of the company's departments, media reported in April 2007. BKV provides transportation services for passengers in Budapest, in the capital of Hungary. Out of the services the bus branch covers 41%, the tram 26 %, the metro and underground 22%, the suburban railway 5% and the trolleybus branch 6%. The lay-offs would entail a less than 10% cut among blue-collar employees, while 20% of the white-collar workers would be affected by the redundancies if the reorganisation plan is accepted by the owner of the company, the Budapest local government. Reorganisation plans are to be discussed at the 10 April 2007 meeting of the council of the local government.

Following several weeks of negotiations between the management of BKV and trade unions, agreement was finally reached about wages within the company. Strike planned for 4 September 2007 was averted with the trade unions accepting the employer's offer. The agreement, valid until 31 December of this year, guarantees a one-time bonus of HUF 12,000 for employees, a base wage raise in the amount of HUF6,000, and HUF7,100 base wage increase for next year. However, wage increase was possible with the reorganisation of timetables, efficiency will be ensured by eliminating downtime will be shortened, and by the dismissal of further 150 employees on top of the 650 employees for whom early retirement was offered as other job reduction measure in the course of the company's reorganisation.


Sources

  • 3 September 2007: origo.hu
  • 7 April 2007: origo.hu

Citation

Eurofound (2007), Budapesti Közlekedési Vállalat, Internal restructuring in Hungary, factsheet number 65211, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/65211.