Menu Close

Agreement with employees and employers

After the first wave of the pandemic, the city was faced with a situation in which both employees and employers had to take on additional burdens. At the meeting of the Municipal Reconciliation Council (FŐÉT) on the 22nd of June, 2020, the representatives of the employers’ and employees’ agreed that the Municipality of Budapest should respond to the social and economic situation caused by the pandemic. For this goal, they reached an agreement with the City Administration to help citizens who have lost their jobs, to aid distressed micro-enterprises, and support small and medium-sized businesses.

Under the agreement, the parties agreed to support the ideas of the Municipality of Budapest in the development of a new public health Start Program, Elderly Care Start Program, Digital Start Program pilot projects in Budapest. It was agreed that the pilot projects should be accompanied by forms of training that would help those working in the public service to have a chance to return to the primary labour market after the program was completed.

The participants of FŐÉT supported the initiative of the Municipality of Budapest to increase the number of opportunities for those who lost their job during the crisis. Partly by expanding the existing Municipal Job Search Office, and partly by bringing the employment services closer to those in need, along with other social and human services.

In order to revive Budapest’s economy, an agreement has been reached so that the Municipality of Budapest can protect micro and small enterprises in distress. This way, a discount was provided for those enterprises and organizations that are essential for the city have lease agreements with the municipality. Lease rates for micro and small enterprises, NGOs and trade unions will be reduced by 25% in the period from 1 March 2020 to 30 June 2020. In some cases, this discount can be further reduced in proportion to the decline in sales, but only by up to 90 percent.

In order to strengthen local production and supply chains, FŐÉT supports the Municipality of Budapest in taking measures aimed at reducing the dependence of small and medium-sized enterprises and individuals on external products and external influences. Purchasing from stable suppliers and customers builds up a sustainable system in their own operations. To this end, Budapest is launching pilot programs among the companies and institutions it owns, where it is moving towards a system that better connects domestic and local businesses, supports the consumption of citizens in small and medium-sized enterprises, transforms the capital’s procurement system, and helps companies that are struggling by mapping the city’s untapped sources.

To support taxi drivers, the Municipality of Budapest will initiate a postponement of the replacement of taxi vehicles until 31 December 2021, with the Hungarian government for taxies that reach the ten-year old limit between 1 March 2020 and 31 December 2021 in accordance with the taxi decree. In addition, for the duration of the crisis, the municipality will reimburse taxi drivers the cost of their journeys to the extent that it takes into account the loss of revenue in the sector.

In order to support employees in raising their children, the Municipality is looking into the possibility of extending the opening hours of kindergartens and nurseries with the involvement of those involved, and providing a subsidy HUF 10,000 per person for the summer day camp, with 10,000 children under the age of 14. The support can be paid for the fees of the camps based on the application submitted by the camp organizer and signed by the parents.

In order to ensure a successful and long-term crisis management, the representatives of FŐÉT agreed to continuously monitor the development of the measures for the economic restart of Budapest.