Czech.Republic
Background information on industrial relations in Czech.Republic
- 11 Dec 2006
Czech Republic: Unions criticise government decision to defer new Labour CodeThe new government of the Czech Republic intends to put before the Chamber of Deputies a proposal to defer entry of the Labour Code into force by one year. The trade unions, which previously threatened to ‘use all means possible’ to prevent any change or annulment of the new Labour Code, consider that this government decision will disrupt the social dialogue. In contrast, employer organisations would welcome a deferral of the Code.
- 11 Dec 2006
Czech Republic: Increased cooperation within trade unions and employer organisationsSocial partners in the Czech Republic appear to be cooperating more within their own ranks. In the last two years, several trade unions have signed cooperation agreements and a number of employer organisations have done likewise. Employee and employer representatives expect that these agreements will strengthen their respective positions in social dialogue: the parties to the agreements will be able to represent one another, coordinate procedures in collective bargaining and assert their rights in labour relations.
- 27 Nov 2006
Czech Republic: Supermarket chain signs first collective agreementOn 17 August 2006, the trade union operating at the supermarket chain, Plus Discount, held a staff demonstration in front of the company’s establishment in Most, North Bohemia, to protest against alleged bullying, humiliation and scare tactics by the company management. The organisers’ aim was to draw the attention of customers, the media and the general public to the situation of employees and to bring about changes in the employer’s conduct. The company publicly rejected all complaints as groundless and underlined that it is the only discount supermarket chain in the Czech Republic willing to sign a collective agreement.
- 12 Oct 2006
Czech Republic: Mittal Steel Ostrava announces over 1,000 job cutsThe largest domestic steel company in the Czech Republic, Mittal Steel Ostrava, which currently employs almost 9,000 people, has announced plans to dismiss at least 1,000 employees by the autumn of 2006. As happened during the first phase of major internal restructuring in 2004, the company will again offer workers who take voluntary redundancy a severance payment well above the legal minimum requirement.
- 12 Sep 2006
Czech Republic: Social partners express views on proposed coalition governmentIn the Czech parliamentary elections of June 2006, the right-of-centre Civic Democrats party won the largest share of seats in the Chamber of Deputies. However, overall, right and left-wing parties won exactly the same number of mandates, which means that the basic distribution of political power in the Chamber is equal. Given this situation, complicated negotiations on forming a coalition government, led by Chair of the Civic Democrats, Mirek Topolánek, have understandably attracted considerable public attention. Meanwhile, the social partners have voiced their opinions on the outcome.
- 25 Jul 2006
Czech Republic: New labour inspection office begins operationsIn July 2005, the labour inspection act entered into force, under which a new institution – the State Labour Inspection Office – and eight regional inspectorates have been created. The new office merges the agenda of the Czech Work Safety Authority and its inspectorates (abolished as of 1 July 2005), as well as part of the agenda of the labour offices’ inspectorates. The state authorities and trade unions believe that the new organisation will act as an effective control; however, the employers consider that the office is weakened by some duplication of roles.
- 25 Jul 2006
Czech Republic: Opposition to proposed new Labour CodeThe proposed new Labour Code, which is currently going through the legislative process, continues to be the subject of extensive debate. Although the code has been passed by the Chamber of Deputies, it has been rejected by the Czech President. It has also encountered conflicting responses from political parties, trade unions and employers.
- 11 Jul 2006
Czech Republic: Extension of collective agreements to increase sectoral coverageThe amendment of the collective bargaining act in the Czech Republic (Act No. 255/2005 Coll.) which took effect on1July 2005 introduced new conditions for the extension of higher-level collective agreements to cover more employers and employees. So far, three higher-level collective agreements have been extended under this amendment: in the construction, glass and ceramics, and textiles sectors.
- 03 Jul 2006
Czech Republic: Engine drivers strike over proposed new bargaining rulesIn March 2006, a half-hour strike by engine drivers resulted in a stoppage of some 332 trains, corresponding to 78% of the trains operating at the time of the strike, or 4.8% of the entire 6,870 trains that Czech Railways had scheduled to run during the course of the day. The striking workers were expressing their disapproval of the new Labour Code. Trade unionists warned that, if further negotiations failed to produce results, the next strike would go ahead without any time limit.
- 15 May 2006
Czech Republic: Hyundai plans major greenfield investmentHyundai Motor Company goes ahead with a major greenfield investment in Nošovice in the Moravia-Silesia region of the Czech Republic. The company plans to open a new manufacturing plant, which should begin operations in October 2008 and employ 3,000 people. It is expected that a further 13,000 people will find work within the supply industry and in services. Both the Czech government and Hyundai will sign an agreement outlining the conditions of this investment.
- 10 May 2006
Czech Republic: Wage increase lowest in 13 yearsThe Czech Statistical Office has announced that the average monthly salary in 2005 increased by about 5.5% to approximately CZK 19,000 (€668). Taking inflation into account, the real increase in salaries amounted to 3.5%. This is the lowest annual wage increase since the separation of the former Czechoslovakia in 1992, and comes at a time of unprecedented economic growth.
- 26 Jan 2006
Czech Republic: Migration of Czech workers poses risk of brain drainIn recent years, research in the Czech Republic has focused on the potential impact of the country’s entry into the EU on the migration of highly qualified Czech workers to foreign countries. While foreign migration of qualified Czech labour may, on the one hand, help increase the competitiveness of the Czech economy, there are concerns that it could destabilise certain economic sectors.