July 16th, 2008

Companies hit by German labor crackdown sue Hungarian state

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A number of companies are suing the state of Hungary for HUF 2.3bn in damages they allege they suffered because of the state’s assistance in a shakedown by German authorities on illegal labourers in Germany, daily Népszabadság reported on Wednesday.

The shakedown, which took place in 2004 and 2005, involved about 50 Hungarian companies that organised work in Germany for more than 3,000 Hungarians. During the course of the investigation, the companies’ bank accounts were frozen and some went bust.

The companies say the shakedown cost them a combined EUR 500m and argue Hungarian authorities should not have given their data to German officials.

Several German courts have ruled that the German authorities’ actions in the shakedown were illegal.

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