Dunaferr dispute ends in agreement

05.03.2013

After a seven day strike the representatives of steel maker ISD Dunaferr and IndustriALL Global Union affiliate VASAS signed their wage and social contract for 2013 on 27 February in Hungary.

This successful strike has strengthened our union at the local and national level. Your struggle was not in vain. The objectives of this properly prepared and well implemented strike have been achieved and has resulted in an agreement. This proves that with sufficient determination and perseverance and a competent negotiation team, we can accomplish any goals we set out to accomplish.

Said VASAS President, Béla Balogh after thanking the workers for taking part in the strike.

The signed agreement includes a 3.5 per cent increase in personal basic wages from January 2013, 1 per cent increase in personal basic wages from July 2013 a 5.3 per cent increase in social benefits from January 2013, a 1 per cent increase in social benefits from July 2013 and a Christmas salary (14th month salary) for 2013; all employees entitled to the 14th month salary will receive it in 2014 divided into 12 equal monthly payments. The agreement is valid for an indefinite period and cannot be terminated before June 2014.  Workers had threatened to engage in further demonstrations and begin a rail blockade to prevent the import of raw materials from Ukraine had the strike been unsuccessful.

Dunaferr Zrt situated in Dunaújváros is the largest group of Hungarian steel plants.  It is a subsidiary of the Ukrainian holding company Industrial Union of Donbass and a major employer in the region employing 6,933 workers of which 3,470 are unionized. The company has faced a number of difficulties in recent years due to the economic crises, this agreement is an important victory for VASAS.