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 economic regeneration of the transition economies of Central and Eastern Europe. However, the demise of the formerly centrally‐planned system was accompanied by the widespread collapse of the old union structures. While these have been replaced, at least in part, by a spontaneous growth of new unions, they have a limited membership and are fragmented in their organization. The usual result is that multinational companies need exhibit little concern regarding the views of their acquired workforce. This paper highlights the rather exceptional case of the Hungarian airline industry in which a moribund, albeit new, union was revitalised to the extent of being able to challenge successfully the overseas employer of its members. While to date unusual, the example may offer lessons for worker organizations throughout the region.