author:

Christina L. Libres

The capital's leaders do not see the special bonuses being given to employees of Budapest's public service companies as justified. Deputy Mayor Ambros Kiss rejected the unions' request, saying the administration only received the bonuses because of its original contract.

According to Deputy Mayor Ambros Kiss, the bonuses given to managers of the capital's companies were fully deserved, and lower-ranking workers were also provided with various benefits – the deputy mayor explained in his response to the National Trade Union and the Federation of Independent Trade Unions. According to Kiss, the premium paid was part of the annual work plan, and the municipality did not provide additional funds for it. In his response, he also described that Budapesti Közművek pays HUF 1.7 billion and HUF 3.2 billion in employee benefits in addition to the basic salary.

A few weeks ago, the National Workers’ Union appealed to the capital’s municipality demanding a review of the legitimacy of bonuses paid to city managers and to consider giving recognition to city workers who performed exceptionally well despite the heat and difficult conditions. They pointed to the fact that managers received bonuses worth millions of dollars, while workers received almost nothing. The bonuses approved by the mayor, ranging from HUF 2.2 million to HUF 11.7 million, are undoubtedly large sums. Imre Martha, Katalin Walter and Tibor Pola – the heads of the city’s public utility companies – are the biggest beneficiaries of this rain of money. David Vitezzi has also voiced his criticism, adding to the tension surrounding the case.

The salary structures of public service companies in Budapest also confirm this trend. These structures create significant inequalities in employment, leading to economic and livelihood insecurity for low-paid workers. For example, drivers earn an average of HUF 550,000, of which 25-45 percent are benefits and shift allowances. On the other hand, managers and department heads already start with salaries in the millions.

The benefits that Kiss mentioned are much less than executive bonuses. Those who work early morning or late night shifts earn more due to higher allowances, but these shifts are more demanding and less attractive. As a result of budget cuts, ticket checking and the reorganization of cashier roles are also a problem: bus drivers have been assigned to check tickets and thus receive only HUF 150 per hour, while ticket inspectors receive a total of HUF 350,000 including the inspection allowance.

The president of the national trade union, Tamas Bajzik, told HVG a few weeks ago that linking bonuses to performance is vague and opaque. He stressed that the goals set in contracts are often not clear, and in his opinion the city should be more economical with its resources, especially in the current economic situation. Rewarding employees is also not enough, according to Bajzik, the lower-ranking employees who actually ensure the city’s operation should be appreciated.

The bonuses of Paula and other directors do indeed fit within the performance-related bonus pools that can be found in public interest data. However, it remains unclear what specific performance criteria these bonuses were based on, as the percentages of premiums and amounts paid do not always fully match expectations.



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