LAY-OFF FEARED IN MÁV HEADQUARTERS

It causes a great tension in the board of directors of the Hungarian Railway Company (MÁV) that the company will not receive next year the sources necessary for a reform and development from the government.

Several leaders of MÁV disapprove of the government which has failed to deal with the transformation plans and some members of the board would give more professional plans to the government to avoid further lay-offs. These fears are not groundless because the contract between the state and MÁV makes the company defenceless because the state does not pay the full price of the ordered services, does not play a decisive part in investments, and because of the loans the losses of MÁV are significant. In next year’s budget there is HUF 10,6 billion for railway development while the government wants to spend HUF 300 billion for motorway development. István Csillag, Minister of Economy explains this by referring to the density of the railway network beyond the European average. There is a lay-off of 11 000 workers planned in MÁV by 2006.

Translated by Péter Szentmihályi Szabó