Multinational Companies and Labour Relations in Hungary: between Home Country - Host Country Effects and Global Tendencies

Open Access

Abstract

This paper will approach the role of multinational companies (MNCs) in shaping Hungarian labour relations in a broader context. Departing from an overview of macroeconomic developments of the last two decades, all levels and aspects of labour relations, actors, strategies, institutions and practices will be examined in order to grasp Hungarian specifics against features common to new EU members in Central and Eastern Europe. A closer look at the underlying macroeconomic framework will help to highlight how in an early transforming, small and open economy incoming FDI and MNCs affect the system of industrial relations which in turn becomes one of the coordination mechanisms differentiating economic and political regimes of old and new market economies. In evaluating the impact of MNCs on Hungarian employment relations home country and host country effects as well as global tendencies will be considered within the 'vehicle of change' and the 'outpost test department' extremes.