Union leader: Labour shortage could lead to lost business, jobs

The labour shortage in the industrial sector could force multinationals to postpone capacity expansions or take some of their production elsewhere, a union leader warned in Thursday's issue of daily Magyar Idok. Zoltan Laszlo, the deputy head of union Vasas, told the paper that one multinational recently laid off more than 500 workers at bases in Gyongyos in northern Hungary and Godollo, on the outskirts of Budapest, because it could not find enough labour. The union has learnt of other production units facing the same dilemma, he added. Laszlo estimated that 2,000-3,000 jobs have been lost as companies take capacity elsewhere, while shelved investments have prevented job creation. He urged immediate government intervention.