Private Security Sectoral Dialogue Committee in Hungary

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Private Security Sectoral Dialogue Committee in
Hungary

• Krisztina Arató Ph.D
• ELTE University
• Faculty of Law
• Institute of Political Science

Round-table on Social Dialogue in the Private
Security Sector Riga 22 March 2006
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Introduction

• 2 major subjects covered in my presentation
• The development of Sectoral Dialogue Committees
  in Hungary in general
• The development of Private Security Sectoral
  Dialogue Committee in particular

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Sectoral Dialogue Committees in Hungary
Background 1.

• The origins of collective bargaining stem from
  the abolishment of central wage regulation in
  1988
• Sectoral dialogue has been rather weak in Hungary
  after system change
• Macro level tripartit dialogue well established
  since 1988
• Sectoral level almost non-existent, collective
  agreement coverage very weak (8 sectoral
  agreements, 48-52 in general mainly company
  level)
• Company level dialogue also problematic

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Sectoral Dialogue Committees in Hungary
Background 2.

• Role of the state
• Although sectoral dialogue is inherently
  bipartite, the underdevelopment of sectoral
  dialogue in Hungary requires the participation of
  the state in fostering the process
• No time to wait until sectoral dialogue
  spontaneously develops
• Active state intervention catalyst function

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Sectoral Dialogue Committees in Hungary
Background 3.

• Influence of the European Union
• The 1998 Commission Communication on social
  dialogue called candidate countries to start
  preparation for accession also in the field of
  social dialogue
• Regular reports by the Commission stressed from
  1999 to develop sectoral social dialogue

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Sectoral Dialogue Committees in HungaryThe PHARE
project 1.

• Project idea initiated by the macro-level
  tripartite body in February 2001
• Contract signed by the EU delegation and the
  Ministry of Economics June 2002 ("Strengthening
  Autonomous Social Dialogue" Twinning project)
• Time frame 2002-2003
• EU partner Danish Labour Market Authority
• Budget 2 million Euros PHARE contribution

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Sectoral Dialogue Committees in HungaryThe PHARE
project 2.

• Objectives
• To create an institutional structure for sectoral
  dialogue by fostering the creation SDCs (153)
• to enable the social partners to maintain
  effective consultation and engage in collective
  bargaining
• to prepare the Hungarian social partners to play
  an effective role in the EU level sectoral social
  dialogue

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Sectoral Dialogue Committees in HungaryThe PHARE
project 3.

• Main contents of the PHARE project
• Studies and research (mapping potential SDC
  sectors, etc.)
• Training, study trips for social partners
• Training, study trips for supporting secretariats
• Main results and outcomes
• SDCs established
• Framework agreement concluded (22 Sep 2004) on
  the operational conditions of SDCs
• Law on autonomous sectoral dialogue in pipeline
• Government provides institutional and financial
  support for SDC operations

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Sectoral Dialogue Committees in HungaryCurrent
status

• 36 SDCs in sectors, industrial branches or
  sub-branches

Agriculture Agricultural water management Extracti
ve industry Food industry Butchery Canning
industry Bakery Sugar Confectionary Textiles,
clothing, leather Printing Chemical
industry Pharmaceutical industry
Metallurgy Machine industry Electricity Gas
industry Construction Building materials Construct
ion Woodworking (s-b) Commerce Tourism -
Horeca Catering Travel agencies Hotels
Horeca Civil aviation Road transport Media and
telecommunications Water and drainage Spa Local
services Special needs provision Private
security Postal services
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Private Security Sectoral Dialogue Committee in
Hungary background 1.

• Private security sector started to emerge after
  the system change 1989/90 before nonexistent
• Privatisation process brought about the need for
  private security services
• Emerging sector inherits workforce and expertise
  from mostly police and military

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Private Security Sectoral Dialogue Committee in
Hungary background 2.

• Regulation started by 87/1995 Government Order
• Previous legislation Act 4/1998 and related
  24/1998 Order of the Minister of Interior
• Most recent legislation Act 133/2005 on guarding
  and private investigation
• Licensing according to legal provisions, by the
  police
• Guards card

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Private Security Sectoral Dialogue Committee in
Hungary background 3.

• Current data (Sep 2005)
• No. of guards cards issued 165.266
• Active guards approx. 100.000
• No. of issued licences for private security
  services
• Personal undertakings 29.819
• Companies 6.679
• No. of companies employing more than 100 people
  approx. 350

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Private Security Sectoral Dialogue Committee in
Hungary employers side

• 1995 - first confederation (Association of
  Companies in Private Security, BNSZ)
• Mainly large companies
• Informal negotiations with emerging sectoral
  trade unions
• 2001 BNSZ, CoESS membership
• CoESS initiative
• 2003 new organisation (Employers Association
  of Hungarian Security Companies, MBVMSZ)
• Merger of BNSZ and the Hungarian Branch of the
  International Bodyguard and Security Services
  Association)
• Inherited CoESS membership
• Enlarged membership (60 companies)
• Market share 50
• Density 25
• MGYOSZ membership (Confederation of Hungarian
  Employers and Industrialists) - UNICE

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Private Security Sectoral Dialogue Committee in
Hungary union side

• 1995 - Trade Union of Group 4
• 2001 - Trade Union of Private Security Workers
• 2004 - Confederation of Private Security Workers
• No. of member organisations 4
• No. of members altogether 1900
• Membership in MSZOSZ (Hungarian Trade Union
  Confederation)
• Membership in UNI-Europa

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Private Security Sectoral Dialogue Committee in
Hungary

• Establishment of PSSDC
• No participation in the PHARE project
• Established relations between sectoral employers
  organisation(s) and unions
• Mutual recognition of each other as
  representative
• July 15, 2004 the Private Security Sectoral
  Dialogue Committee was established
• Secretariat in the Centre for Sectoral Dialogue

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Private Security Sectoral Dialogue Committee in
Hungary major challenges

• Issue of prices in public procurement and in
  general
• Issue of employment versus subcontracting
• Legal background problems with new legislation

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Private Security Sectoral Dialogue Committee in
Hungary major activities

• Participation in restructuring the PS vocational
  training system in national and European level
• Participation in the European level (CEN)
  standardisation of the sector
• Preparation of the sectoral level collective
  agreement (currently only 1 company level CA
  exists)

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Private Security Sectoral Dialogue Committee in
Hungary co-operation

• Hungarian Chamber of Bodyguards, Property
  Protection and Private Detectives
• Ministry of Interior
• Participation in European Social Dialogue
• East Central European relations bridge between
  CEECs and European organisations

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Private Security Sectoral Dialogue Committee in
Hungary summary

• Uniqueness
• Social partner organisations working exclusively
  in this particular sector
• Establishment of Sectoral Dialogue Committee
• Evaluation
• Enthusiasm, international acknowledgement
• Co-operation with other players (central
  government, Chamber, etc.) to be deepened
• Sectoral collective agreement to be finalised