The collapse of the post-socialist industrial relations system in Hungary

Abstract

The post-socialist industrial relations system has practically collapsed in Hungary as a consequence of the deep and long economic, political and ethical crisis following the credit crunch, which begun in Hungary in summer 2006.One may argue that this collapse was preceded by a protracted weakening and decomposition of the main actors, especially the trade unions.This article, however, argues that the collapse was brought about by the political strategy of the government elected in 2010.The government has proceeded to destroy the post-socialist industrial relations system in order to remove a potential veto-point, a checking power on government actions, in the drive to re-organise the country.Moreover, the government also intends to nudge a new system, partially by supporting those actors close to it and partially by creating new institutions.The goal is that the new system would be the partner of the government in the re-organisation of the country and provide a kind of democratic legitimacy to government policies.We should note, however, that such efforts are also speeding up the decomposition of those actors preferred by the government.

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