Agreement Saves Capital From Crippling Strike
In negotiations ending in the dawn of last Monday, Budapest Transport Rt. (BKV) and five workers’ unions reached an agreement over wages for 2005.
The unions, which represent 90% of BKV’s 12,600 workers, originally threatened the municipal transport company with a total shutdown of Budapest’s public transport service Tuesday morning, if their demands are not met. The strike would have been the most severe in the history of BKV.
Unions demanded a HUF 20,000 gross monthly wage increase on the HUF 170,000 average monthly gross wage of BKV employees. The company’s management originally offered a raise of HUF 11,000, but after a lengthy series of negotiations it finally gave in to a HUF 16,000 increase, which the unions accepted.
The company will consequently spend HUF 28 billion on wages in 2005, HUF 2 billion up from the previous year. Since 2000, workers have been receiving a flat annual increase on their wages.
BKV’s business plan for 2005 has not been approved by the Budapest Municipality. The agreement with the unions will boost the company’s wage costs by HUF 400 million compared to the management’s forecast. This sum could still fit into CEO Botond Aba’s plan to keep the company’s outside funding at bay.
