This paper addresses the relationship between economic transition and industrial relations in the Central European country of Hungary and is one result of research undertaken in Hungary, the UK and New Zealand between 1990-1992. It examines the development of economic reforms in Hungary up to the present day and the role of trade unions in the reform process. It argues that current approaches to economic reform are taking insufficient account of industrial relations and the strength of the former official unions by failing to address the historical nature of these relations and their continuing influence on the management of the reform process. The paper is critical of assumptions regarding the universality of capitalist rationality taken by some western management consultants and business schools currently active in Central Europe.
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