( dpa ) - Hungarian rail workers are to continue their two-day strike, which reduced train operations to less than a quarter on Tuesday, after talks between a major union and Hungarian State Railways (MAV) failed to solve differences over wage demands.
The Railway Workers' Free Trade Union (VDSZSZ) first began its action on Friday, although it suspended the strike until Monday as talks continued.
Now that the latest round of talks has also failed, union leader Istvan Gasko said the strike would continue until at least midnight Tuesday, at which point a decision would be made whether or not to continue.
Gasko also said that the union had enough funds to compensate workers for lost wages for several months, hinting that the union was prepared to dig in for the long haul.
The VDSZSZ wants a wage increase of 10 per cent and a bonus payment of 250,000 forints (1,434 dollars), which the union says its members are due after MAV sold off its cargo division.
MAV, however is only offering 6.9 per cent.
The VDSZSZ represents roughly 25 per cent of MAV's workforce of 36,000. MAV said that only ten per cent of the workforce refused to work, but with many of these people in key jobs such as ticket inspectors the rail network has been crippled.
MAV is attempting to compensate for the cancelled services by running buses, but many commuters are turning to their cars instead.
The strike also hit international services, with the Moscow- Budapest train forced to sit at the border for almost 24 hours. Ukrainian rail operators have warned passengers against travel to Hungary.
Government officials have hinted at a political dimension to the strike with a key referendum on government policy coming up, although Gasko denies this.
The unpopular Socialist-liberal coalition is on March 9 facing a referendum, in which the nation will vote for or against keeping tuition fees and charges for visiting the doctor and hospital stays.
Economy Minister Csaba Kakosy said the strike was part of trouble- making campaign and could last right up until the referendum.
Gasko and his union last year staged a protest against the closure of secondary railway lines and against government plans to introduce private capital into the health insurance system.
The charges and reform to healthcare are part of a package of austerity measures introduced to reduce Hungary's massive budget deficit.