Companies in Shock as Orbán Cabinet Proposes Ban on Guest Workers
The Hungarian government is considering a total ban on employing third-country guest workers in Hungary starting from 1 January. This decision has caused shock among several sectors in Hungary, particularly the catering and home delivery sector, which are already struggling with a lack of workforce. The potential ban is being attributed to domestic reasons, but even the Hungarian Chamber of Commerce and Industry’s head has advised against rushing into such a delicate issue.
The Orbán cabinet, led by Prime Minister Viktor Orbán and his Fidesz party, has been staunch advocates of stopping illegal migration to Europe from the Middle East and Africa. In recent years, they have implemented strict rules against illegal migrants and implemented measures to prevent their entry into the country. In a 2015 campaign, Fidesz claimed that migrants were taking jobs away from Hungarians, a sentiment that resonated with many voters.
However, there is growing discontent among Fidesz grassroots about the increasing number of legal migrants who come to Hungary to work and allegedly compete with locals for jobs. Despite the fact that the Hungarian economy is facing a labor shortage, there are concerns about security and the impact on the workforce. This has led to calls for a ban on third-country guest workers, a move that could have significant implications for various industries.
The government is expected to make a decision on the issue soon, leaving affected sectors little time to prepare. There are concerns about the potential impact on industries like catering, where firms are already struggling to find employees for night and weekend shifts. Business leaders warn that economic growth may be hampered without access to a new workforce.
Efforts are underway to lobby for a postponement of the ban, with calls to exempt certain countries like Georgia and the Philippines. It is argued that Georgia alone may not be able to fill the gaps in the labor market, and new agreements with more populous countries are needed. The Hungarian Chamber of Commerce and Industry has expressed surprise at the government’s proposal and the lack of consultation on the matter.
While experts believe that a ban may not have an immediate devastating effect, there are concerns about the long-term implications for the economy. Meanwhile, other Central and Eastern European countries are taking steps to facilitate the employment of guest workers. With the number of third-country employees in Hungary on the rise, the government’s decision on the ban is eagerly awaited by many.
