May 29, 1999

Honoured Congress Delegates and Guests,

On the first working day of our Congress, two tasks were already carried out. We made the balance of the last four years, and amended our Statutes. So today we can focus our attention on the tasks of the forthcoming period. All those present have received the necessary written documents, so I can have a short introduction now, with the brief account of some key issues.

Honoured Congress,

We lived through hard four years plenty of tensions and trials. This period was mostly characterized by economic crisis phenomena, financial and social restrictions, the quick worsening of the operating conditions of the public sphere and the salaries of its employees. These circumstances have seriously tried the unions of the public sphere, including our confederation. We could not neglect the economic conditions of our country, but disagreed with the fact that due to the extent of restrictions, a significant part of public institutions were endangered by the stoppage of work, and the basic allocations of the population were also endangered in the health, public education, social and cultural sectors, in public administration or in the fields of jurisdiction and public security.

We could not but decided to fight, by all possible means, for the functioning ability of the budgetary institutional system, to stop the worsening of the salaries then for the rise in wages. Our struggle also aimed at the protection of jobs and the reduction of the central staff decrease.

The mentioned circumstances and the differences of opinion caused serious troubles in the relationship between our confederation and member organizations versus the previous government. Nevertheless, we could keep on having regular dialogues. The government knew that we had support and able to show our organizational strength, and so it was obliged to reckon with us and to accept compromises and agreements. The most significant results of the agreements included the three-year public servant agreement and several wage agreements for one year or a branch of profession.

From 1997 on, due to the slightly improving economic situation, a slow positive process have started also in the conditions of the public sphere. The worsening of real wages stopped and even a slight increase occurred, but it could not be or hardly felt by the individuals. The government admitted that the “lawn-mower” method of staff reduction was unjustified, so a new system of financement and wages was to be elaborated.

The question can be raised whether it was appropriate to exercise self-control in raising our demands while considering the economic situation of the country. Is it acceptable that in our policy of safeguarding interests, our attitude was characterized by an intention of negotiating and making agreements – though we had several successful demonstrations in the educational, health and cultural spheres? Many people evaluated and criticized it as extreme loyalty towards the government. We are convinced that this is unfounded criticism. Those who hold this view do not know or do not consider the given conditions. We can state that we were not guided by loyalty but a sense of reality and responsibility.

To sum up the developments of the period, we may say that even amidst serious socio-economic circumstances, our struggle waged for the safeguarding of interests was not unsuccessful. In spite of the fact that we made every effort to prevent the losses affecting the public sphere and its employees, we could only moderate them. We are convinced that without our considerable presence and intervention, the situation of the public sphere would have even worsened.

Honoured Congress,

As a result of the parliamentary elections in 1998, the incoming government opened a completely new epoch. The scale of values, economic philosophy, social priorities, governing attitude and style of the new civil government, as well as its expectations and attitude towards the trade unions have essentially differred from the views and practice of the previous government.

The Trade Union Forum for the Reconciliation of Interests (SZEF) welcomed several parts of the programme of the new government but at the same time we indicated that the aims should be proved by practical moves. Today, after almost a year, we have to state that there is a significant gap between the promises of the programme and reality in several fields, and this gap is especially considerable as regards the functioning and wage conditions of the public sphere. The government policy of employees and the government attitude towards the trade unions are also the subjects of right and varied criticism. They provide reason for our disappointment and lack of confidence expressed also by our demonstrations of last autumn and this spring, with several ten thousand participants.

This is the reason and not any other thing. We have to emphasize it because we are often accused of being dissatisfied for “having put our money on the wrong horse” during the elections, and of having opposition parties behind our demonstrations. Well, we have to remind you also at this forum, that the SZEF “did not put any money on any horse”. We persisted in the basic principle of our Statutes, arising from the special composition and character of the SZEF, that lays down the independence from the parties, and we did not alter it during the last amendment either.

Honoured Congress,

Though we are in a bad temper and sometimes even embittered, cannot give up our optimism and resolution. In spite of its failures and difficulties, the SZEF has no other choice than to continue its efforts aiming at constructive co-operation and agreement in its relationship with the government. In our situation, it is more inevitable than in case of the trade unions of the competitive sphere. We cannot urge boycott and permanent confrontation not only for the fact that all the significant affairs of the public sphere depend on the government but also for the demand that - sooner or later, but we hope sooner – we have to follow the way of the civilized and efficient social dialogue also in our country, considered as a basic requirement of the European Union.

Honoured Congress,

We cannot neglect taking part in the preparation of the reforms of public sphere and we shall always insist on it in the future. These issues have been included in our work so far as well. What is our motivation to take part? On the one hand, the recognition of the fact that also in Hungary, the global challenges are more and more highlighted that aim at the transformation of the public service institutional systems all over the world, followed by new consequences and sometimes serious dangers as regards the living conditions of the citizens and the employees of the public sphere.

On the other hand, the conviction that the employees and their trade unions cannot behave like outsider spectators in the modernization process of public services, while looking at the events passively. Our endeavours are made up-to-date by the fact that the government wishes to continue the intensive reform of state budget, the decrease of the extent of state redivision – according to us, to an unjustified extent – and the global transformation of the institutional system of public health, social security, public education, culture and public administration.

It is obvious and important to emphasize, that we could decide always to deny and resist these intentions. We need the strategy that enables us to take part in the progress of the transformation of public sphere with constructive proposals and occasional aternative offers, struggling in this way against the influences that endanger, without reason, the living quality of people and the situation of public service employees. For it, we have to know the practice of different countries and to consider the successful solutions, avoiding the unfavourable ones. From among the attempts, it deserves attention and at the same time warns everybody that the different steps were successful only if those concerned and the interest representation were involved in their elaboration and also motivated by them.

It is a well-known fact that in Hungary, that already before the change of regime, attempts were made to reform public services and modernize public administration. In the 1990s, these intentions were intensified, and different steps were taken.

Evaluating this process, we may say that

• it was mostly, and almost exclusively guided by the constraints of financial policy, and even of the current budget,
• extensive professional basis was missing or neglected,
• the preliminary examination of social effects was omitted.

As a consequence, these reform attempts in the fields of public health, public education etc. can be called the collection of improvizations or often unsuccessful and harmful trials, rather than real and useful improvements. These events, the continuous reform menaces, the staff decreases, the sudden worsening of salaries did not only endanger the living conditions of the employees but also tried their human behaviour, sense of vocation and moral scale of values.

All this is the reason for the determined manner of the SZEF against the mentioned different intentions, and measures. At the same time, may I stress it again that we are not conservative, anti-reformists and do not question the necessity of changes in public sphere. At the same time, we have to express our views and worries.

From among our standpoints, the two most important ones are:

• The preparation for the concrete steps of reform should take place only with the full and simultaneous consideration of social effects, professional points of view and the conditions of financial policy, based on the rational compromise of the undoubtedly different interests.
• The reform cannot endanger the basic supply and allocations of the citizens, cannot increase their already unbearable financial burdens and cannot involve significant dismissals of the employees in the public sphere.

Our worries can be summed up as follows:

• Our first worry is whether the necessary public agreement can be made with society to adopt the reform.
• Experiences show that society does not accept, or accepts it only with reservations, if the role of the state is reduced in the fields of public health, social supply, public education, public administration and public security. In fact, public opinion gives priority to public health, education and public security.
• Our second worry is whether the citizens, mainly those who live on their wages, will be able to grasp, within reasonable time, the opportunity of the supplementary pre-care or self-care, while many of them have bread-and-butter worries. According to some earlier attempts, they are not able to do it and are not ready for it either.
• Our third worry is which fields of public sphere can be clearly considered market-conform. We have no experience whether the market institutions are better in the public sphere. European experiences show that in many cases the privatization of public services costs a lot to the state and the citizens, and the standard of services do not rise.
• Finally, it is also an exciting question from where the necessary financial resources can be raised for the transformation of the public service structures. Not possibly from the decrease of the employees’ wages?
• The mentioned issues draw the attention to the fact that the future of public service is not a matter of a sector but a socio-political one. It is our nation-wide issue that can be settled only with a high sense of responsibility and wide social agreement.

Honoured Congress,

We shall continue to struggle for the considerable improvement of the wage and income level of public employees, public servants and public service, in the future too, and shall consider it as an outstanding task. It is not by accident that I emphasize the struggle as the budgetary directives of the government for the period 2000-2003 envisage an average increase of 2% of the real wages in the public sphere, for all the three years. It is unacceptable. The employees of public sphere belong to the wage-earners whose wages today have a 30-35% lower purchasing value than before 1990.

The lag is unreasonably great if we take not only the competitive sphere but also the wage average of national economy, not to speak of the wage lag of public sphere in relation with the EU-countries. But the wages also lag behind if we take the EU associated member countries or those before joining. From among these countries, we have the worst proportion between the GDP and the wages. This intolerable situation has been even worsened by the wrong wage policy of the government this year, i.e. the freezing of the salary funds in the public sphere. It has been a serious mistake from the employees’ point of view and also in the terms of social policy. Due to it and the disadvantageous amendment of tax laws, most public employees earn less than last year, while 3-4% increase of the yearly real value of the earnings, on the average of the country, is foreseen by the government. This situation is absurd and unacceptable.

This is why we have initiated, already in the possession of concrete data, the renewal of the wage deals on this situation and the possible solutions. Reference is always made to the adopted budget, but we cannot accept it as the settlement does not require a supplementary budget. It cannot be accepted either that due to the natural disasters occurred in the country and the external – international – circumstances, no solution could be found. No doubt, these are really tragic facts but it is unacceptable that the price of everything, at any time, should be paid by the employees of the public sphere. We have an impression that in this country, money is left for everything, including the never-ending consolidation of the banks, consuming several hundred billion Forints, and only the awful and humiliating low wages of the public sphere cannot be increased.

As regards the coming years, we definitely suggest that from 2000, the wage increase should be automatically adjusted to the inflation of the previous year, and it should be considered an evidence when defining the wage rates for the given year. We also propose the wage deals to cover only the extent of wage-raise that is above this sum and increases its real value. In the forthcoming years, we shall require the wage policy measures that raise the salaries of the public sphere to a greater extent than the average of national economy, and increase them in a more dynamic way. In case the mentioned demands are met, we shall be ready to make a long-term and compensating wage agreement.

We have urged, for a long time, the revision and the new regulation of the present system of wage financement in the public sphere. We hold the view that the wages of the public sphere should be guaranteed by the state, and these guarantees should be laid down in the provisions of law. In this respect, may I mention that we are aware of the fact that the wage policy and employment policy depend on each other, but we could not and cannot accept the practice according to which the staff decreases are enforced regardless to the functions, the related tasks and their possible changes. We propose to make the staff number analysis that goes into the details of the situation in the different fields of public sphere, considering the developing trends and the tasks of the organizations. On this basis, we also suggest to make the related conception of employment policy in the public service, and an action plan.. We shall willingly take part in this work.

Honoured Congress,

In 1995, at the 1st Congress of our Confederation, we urged to examine the possibility and expediency of the unified publice service law. This work has started and we see the possibility of our participation in it.

Without going into the details of our views, we can confirm it right now that support the elaboration of the employment guarantees in the public service, the general and special solutions of the avance systems, the better financement of the outstanding performances and the possible other solutions of rewarding special public service tasks. We are convinced that the wage and earning conditions are fundamental factors of increasing the appeal, the keeping force and the standard of public sphere, but are not its only definitive elements.

Honoured Congress,

The hard challenges of the past years have made our Confederation experienced, more matured and fit for fight. Our firm and definite policy of safeguarding interests has been recognized in public life even among those who do not really sympathize with us.

The international recognition of our Confederation is proved by our active membership in the Federation of European Trade Unions. Our bilateral international relations have been extended and enriched.

In our days, our Confederation meets the basic requirements that can be expected from a trade union federation of European demands. But we cannot be satisfied with it, and cannot neglect our further commitments and tasks.

The changes of the surrounding world and our national surroundings as well as the phenomena of modernization demand the revision of the roles of the trade unions as well. On the one hand, we have to face national socio-political problems occurring beyond the world of labour, and on the other hand, we have to cope with the decision-making phenomena within the EU, that are above the nations, and also face the international merging of capital. All this opens new dimensions to us. In this context, we have to see that our present abilities do not allow us to wothily react to the new demands.

So we have to examine thoroughly how we should change our traditional attitude, structures and programmes. This work will be the great trial of the coming years.

It can be seen already now that a major role is attributed to the trade union policy that has perspectives and considers, in a complex way, the processes of society in the long run and in the daily life as well. And at the same time, it is able to find its way at any time, and has solutions to the problems. All this requires the conscious recognition of the demands of professionalism and the European character of the trade unions, and to create gradually its necesary conditions. An organic part of this process is the raise of the professional standard of the safeguarding of interests, and a larger involvement of scientists and well-experienced practical experts. It is also of utmost importance to make good use of international experiences, with a critical attitude, and to create a circle of officials and activists who are ready and able to hold dialogues of new dimensions with the members and the outsiders too.

For the success of the cause, it is indispensable to concentrate on the spiritual and financial potential of the highly divided trade union structures, in a purposeful and rational way. We have to encourage also the trade union idea of public service unity and the related actions, without neglecting the justified autonomy and the assertion of the interests of each professional branch.The integration of such public service trade unions as the British UNISON or the German ÖTV, having millions of members, serves as good examples and encouragement ,and provides us with useful experiences.

Of course, we know that the outlined process requires hard work, a patient settlement of supposed or real conflicts of interests, the surmounting of the obstacles of attitude, prestige and of personal character. No doubt, the pledge of future is rational integration not only in the macro-structures of societies but also in the trade union models.

Honoured Congress,

Finally, let me express my sincere thanks, also at this forum, to the trade union members and employees of the public sphere for their supporting the work of our federation. Thanks are due to our colleagues and friends who do active and unselfish work in our affiliated unions, county co-ordination offices, pensioners’ board, the special committees of the different fora of the reconciliation of interests, the federal council of SZEF, in PEB and the executives’ body. I also express our best thanks to our co-operative partners and fellow-members in Hungary and abroad, and last but not least to the highly diligent members of the small collective working with me, who are my closest helpmates in the everyday work.

Thank you for your attention.