The Continental factory in Makó, which recently laid off Hungarian workers responsible for training migrant workers and has seen its fair share of horrific workplace accidents, received significant state aid while committing to certain employment numbers.
What is the factory's response, and what does the fired union leader have to say? János Lázár, the region's representative, previously declared his intention to prevent Continental from receiving further state aid and to recover previously granted funds. But will any action be taken?
The Continental, specifically ContiTech Fluid Automotive Hungary Ltd., is one of the largest employers in the Makó area and has been embroiled in numerous scandals. Issues have been raised about:
* The treatment of its employees,
* The occurrence of horrifying workplace accidents,
* And the firing of some Hungarian workers training Indonesian migrant workers.
Why haven't the workers left the company despite such issues? As per the union leader, there are reasons for this. Disregarding legal requirements, Continental fired the union leader and initiated several lawsuits against him for exposing problematic situations. Is this acceptable for a company that has previously enjoyed strong governmental support and financial backing for its investments? In light of the emerging scandals, János Lázár, the ruling party's parliamentary representative, suggested making the company refund the subsidies. A bold statement indeed, but what actions will follow?
1.262 Billion HUF in Support
Our public interest data request to the National Investment Agency (HIPA) and the Ministry of Foreign Affairs and Trade did not result in the release of contracts, amendments, or annexes regarding the state aid provided to the Makó factory. However, they disclosed that the company received a total of 1.262 billion HUF in six installments between 2014 and 2019 for its investments in Makó. Out of this, only 153 million HUF has been paid back (with interest, amounting to 158 million HUF), as the company withdrew from fulfilling its obligations under the smaller, second phase of the 2018 support agreement.
In a 2021
Facebook post, Lázár referred to this withdrawal, stating that the Makó rubber factory chose to pay back parts of the job preservation subsidies to freely dismiss employees. He added that ContiTech Fluid Automotive Hungary Ltd. initiated the contract termination with the state because it could not or did not want to maintain the relevant jobs. Our investigation confirms a steady decline in employment numbers at the factory, with over a thousand job losses since 2019.
Despite a commitment to create 123 new jobs alongside maintaining a workforce of 1,676 people as per the EKD/FELD-2014/24 subsidy agreement, the actual employment figures and the impact of using migrant and temporary workers on meeting these commitments remain unclear, leading to questions about the factory's long-term planning and compliance with state aid conditions.
The Future of Makó Factory
ContiTech's refusal to provide information on the current number of employees, the distinction between permanent, temporary, and migrant workers, and future hiring plans leaves many unanswered questions regarding its operational and employment strategies. Meanwhile, the company announced the release of approximately 90 migrant workers whose contracts are due to expire, intending to replace them through internal restructuring and retraining of local staff.
Despite facing reduced demand for its products, primarily due to the shift towards electric vehicles, and subsequent reductions in workforce, ContiTech remains committed to its long-term presence in Makó. Nonetheless, the lack of transparent communication about the factory's future and the concerns raised by former and current employees, including serious workplace accidents, health issues, and job insecurity, paint a grim picture of working conditions.
As the debate over state aid and the company's responsibility towards its employees continues, the lack of concrete answers and actions from both the company and government officials raises questions about accountability and the future welfare of workers in the region.
Will János Lázár's promises to reclaim state aid and enforce accountability come to fruition? Only time will tell.