Budapest Transport Workers' Strike Actually Helps BKV

The parties have come closer to an agreement as both of them came up with new proposals but no deal has been inked yet.

Talks are to continue on Friday at 17:30 CET, local newswire MTI reported.

It is extremely hard to assess what negative influence the strike will have on Hungary’s GDP this year and it may have an impact at all only if it continues longer and widens, index.hu reported on Friday.

On the other hand, the strike comes in handy for the cash-strapped company. As long as its buses and trams are grounded and the drivers play cards in the depots, BKV does no accumulate further debts (from the taxpayers’ money).

Central Statistics Office (KSH) statistician Péter Szabó, head of the national accounts department, said the strike is unlikely to reduce gross domestic product even by one tenth of a percentage point, but if it continues much longer, economic output may be but by a few percentage points.

BKV, which has been deeply in the red for years, is at least is not making losses during the strike, he highlighted the bright side of many passengers’ aggravation.

And if losses are not increased, the company costs the state and thus taxpayers less, Szabó added.

Gábor Nemes, spokesman for the strike committee said BKV loses some HUF 40 m a day on lost ticket sales but this is entirely offset by savings of HUF 90 m (salaries not paid to the strikers and the related costs, as well as savings on fuel and maintenance.)

Meanwhile, filling stations are likely to boost revenues as many people who have used public transport so far now have probably changed to cars. Thus domestic consumption also grows.

A few lost days in plants will be made up for later in the year therefore this will not have an affect on output, either."

Source: Portfolio Online Financial Journal


Photo: Tuba Zoltán [origo]