Andor highlighted the importance of an official minimum wage, as an economic stabiliser at a time of crisis. He said that once introduced, minimum wages slow down recession, ensure a level of demand among low earners, and promote employment. Minimum wages could also ease social inequalities and deflationary risks, he added.

István Wimmer, secretary-general of employer organisation MGyOSz, said that decent wages were important both for the employee and their employer, because they determined the country’s purchasing power and therefore its economic output. Wimmer said that the number of those employed in the private sector had been decreasing for the past 6-7 years, which he called “symptomatic” of the economic situation.

He also warned, however, that the economy should be promoted first, and that will ensure higher wages and living standards, and reduce poverty. Péter Pataky, head of trade union federation MaSzSz, said, on the other hand, that the current social crisis could only be handled through wage hikes.

Poverty among workers is an increasing problem, he said, and urged a cooperative effort by employers, unions and the government. Pataky also urged that wages in public work schemes should be raised to the level of the minimum wage by 2018.

Payments below the minimum wage should not be allowed, he said, and pointed out that the real minimum wage was what people received in fostered jobs. It is unacceptable that people working full time should be paid less than the subsistence level, he added.

Source www.hungarymatters.hu

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