FDI AND INDUSTRIAL-RELATIONS IN CENTRAL AND EASTERN-EUROPE - THE EXCEPTIONAL CASE OF THE HUNGARIAN AIRLINE

Foreign direct investment was obviously going to be central to the eco nomic regeneration of the transition economies of Central and Eastern Europe. However, the demise of the formerly centrally-planned system w as accompanied by the widespread collapse of the old union structures. While these have been replaced, at least in part, by a spontaneous gr owth of new unions, they have a limited membership and are fragmented in their organization. The usual result is that multinational companie s need exhibit little concern regarding the views of their acquired wo rkforce. This paper highlights the rather exceptional case of the Hung arian airline industry in which a moribund, albeit new, union was revi talised to the extent of being able to challenge successfully the over seas employer of its members. While to date unusual, the example may o ffer lessons for worker organizations throughout the region.