Introduction: Multinationals and Employment Practices across Europe

Abstract

The 1990s were a turbulent period for most people in former socialist countries in Central and Eastern Europe (CEE). Political and economic changes after the fall of state socialism had wide-ranging consequences for the lives and careers of individuals. Capturing the essence of these early transition years and conditions in Hungary, Pál Schiffer produced the documentary trilogy Breaking Points (Schiffer 1996). This film authentically shows the everyday struggles of the unemployed and their families, as well as the economic stagnation of the city of Székesfehérvár — one of Hungary’s most industrialized cities before 1989. Despite the difficult post-transition years, the economic and social conditions in this region soon changed. The breaking point has been the settlement of foreign multinational companies (MNCs) in Székesfehérvár. With the inflow of MNCs, employment was rising again and by the mid-1990s, Székesfehérvár found itself among the most rapidly developing industrial parks in the world. Fifteen years after the first MNC inflow, the city is still flourishing and unemployment is down. Beyond growing employment, the inflow of MNCs also stimulated a growing variation in employment practices.