Foreigners replace Hungarian workforce in Hungary

The Hungarian government launched a billboard campaign during the 2015 migration crisis, asserting that residents of third-world countries couldn’t snatch jobs from Hungarians. However, a reversal is now unfolding, caution trade unions, as foreign workers increasingly replace Hungarian counterparts across various sectors.

Despite Prime Minister Orbán and his government consistently linking migration supporters to terrorism, Hungary’s reliance on foreign labour shows an unstoppably upward trend.

Experts attribute this to structural issues within the Hungarian economy. Productivity stagnated in recent decades due to government backing of low-added-value investments such as car manufacturing and battery production. As Hungarian companies and workers integrated into the production chain at lower levels, high salaries became elusive. Consequently, numerous highly qualified and diligent Hungarians sought employment abroad, resulting in a significant labour shortage. Foreign workers began entering the Hungarian market en masse to fill this void.

Recently, the South Korean Bumchun scandal unfolded, where Hungarian workers were dismissed to make way for Vietnamese replacements, despite substantial government aid for the investment. Similar incidents occurred in Gyöngyös (B. Braun) with workers from the Philippines, and allegations emerged against the Continental plant in Makó, where supposedly 150 guest workers arrived from Indonesia, Szeretlek Magyarország wrote.

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Unprecedented rise of xenophobia?

The typical pattern involves plant expansions utilising both Hungarian and foreign hired workforce, followed by the dismissal of Hungarian workers, facilitated by the flexibility of hired workers’ contracts.

Tamás Székely, chairman of a Hungarian workers’ union, highlighted instances where owners replaced Hungarian workers with foreigners, emphasising the detrimental impact on both plants and Hungarian workers. He expressed concern that such situations might trigger unprecedented xenophobia in Hungary.

Foreign workforce is not cheaper

Contrary to popular belief, employing foreign workers is not necessarily cheaper. Tibor Erzse, a labour expert, explained that it can be more expensive due to the need to provide housing, catering, etc. However, foreigners may be more motivated, working longer hours and accepting lower expectations regarding workers’ rights, safety and health protection.

Szeretlek Magyarország’s article contends that companies in Hungary find it more convenient to employ hired foreign workers, given the ease with which they can be dismissed. Moreover, the perception that foreigners work more efficiently and complain less facilitates the substitution of Hungarians with foreign workers, even in the medium term. While the government theoretically prefers the employment of Hungarian workers, thorough checks are often lacking.

Statistics indicate that 150 thousand Hungarians have signed contracts with temporary work agencies, highlighting the widespread nature of the issue affecting many Hungarian families.

Radical right-wing opposition advocates for a reconsideration of Hungary’s economic policies

The opposition party Mi Hazánk is strongly advocating for a profound reconsideration of Hungary’s economic policies.

János Lantos, the party’s labour spokesman, underscored this call during a press conference on Wednesday. Drawing on data that compared real household incomes between Hungary and Poland, revealing Hungary’s comparatively disadvantaged position, Lantos attributed this situation to the privatisations of the 1990s. He argued that these privatisations positioned the country as a provider of “global big capital,” while the present government’s focus on achieving “battery superpower status” had led to a reliance on importing guest workers. Lantos emphasised the urgent need for establishing an independent Hungarian national economy centred on domestic manufacturing, and called for a heightened recognition of Hungarian workers, both in moral and financial terms.

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