Automotive companies may raise salaries during the year due to rising inflation and labor shortage, RTL News reported. The Hungarian Metalworkers’ Federation (VASAS) said these two factors result in companies offering more money for workers on their own. Others however, question if this would be a large-scale, nationwide tendency.
The trade union confederation reported that they are negotiating extraordinary wage increases of around 8-18% with some 14 automotive suppliers. These affected companies employ some 10,000 people in total, most of whom have already received a pay raise of at least 10% this year, and can expect another increase in the second half of the year.
On the other hand, according to the Confederation of Hungarian Employers and Industrialists (MGYOSZ), this is not something typical. They say most of the employers won’t be raising wages this year.
GKI Economic Research also argues that the explosion of energy prices and rising cost of raw materials are reducing budgets when it comes to wage increases, especially in the case of the Hungarian-owned SMEs.
In addition, even if it increased recently, inflation may indeed eat up pay raises. According to a recent representative survey by Pulzus Research, while some 61% of Hungarian workers received a pay hike this year, most received a maximum of 10%, meaning that their entire raise could be outpaced by the inflation which officially was 9.5% in April, but food prices rose much more significantly by 15.6%.
featured image via Sándor Ujvári/MTI