Czech.Republic
Background information on industrial relations in Czech.Republic
- 21 Dec 2007
Czech Republic: Multidisplay maintains staff levels despite restructuringMultidisplay began production of electronic valves and tubes for radios and televisions in 2001, with significant investment incentives from the government. The latter company created about 3,000 new jobs in the Moravia region in the eastern part of the Czech Republic where unemployment is traditionally high. Following a change of ownership and planned redundancy measures, the company has decided to maintain its current staff levels.
- 21 Dec 2007
Czech Republic: Government proposes extending working hours of doctorsThe Ministry of Health has proposed extending working hours for doctors to up to 48 hours a week in order to resolve the labour shortage caused in part by the new Labour Code, which came into force in January 2007. The ministry wants to take the opportunity to pass technical amendments to the Labour Code in parliament in order to make these changes. However, trade unions as well as professional organisations are threatening to protest against such a proposal.
- 19 Dec 2007
Czech Republic: Final Questionnaire for EIRO comparative analytical report on the impact of the working time directive for the road transport sector on collective bargainingThis study is concerned with the impact of the working time directive for the road transport sector on collective bargaining in the the Czech Republic.
- 14 Nov 2007
Czech Republic: Industrial relations in the postal sector — Czech RepublicThis is the Czech contribution to the comparative analytical report on Industrial relations in the postal sector
- 05 Nov 2007
Czech Republic: Government stalls on adopting new Service ActThe Czech government has resolved to withdraw the Service Act and replace it with new legislation. However, the trade unions are fundamentally opposed to this move. The Service Act was originally supposed to enter into force in 2004, but the effective date has been postponed three times, most recently to January 2009; the delay has been attributed to a lack of finances in the state budget.
- 05 Nov 2007
Czech Republic: Trade unions oppose proposed pension reformWork on a draft act to amend Act No. 155/1995 Coll. on pension insurance and certain other acts continued in 2007. Both trade unions and employer organisations had the opportunity to make comments on the reform. The parliament is expected to complete a draft act by the end of the first half of 2008. If everything goes to plan for the Ministry of Labour and Social Affairs, the reform will take effect from 2009.
- 29 Oct 2007
Czech Republic: Teachers’ unions issue strike warning over spending cutsIn recent months, trade unions representing schools have issued a strike warning in protest against the government’s treatment of their demands. The situation in the education sector has been tense since March 2007, when the government announced substantial job cuts in the public sector. The Czech-Moravian School Teachers’ Trade Union is striving for education to become a greater priority for government, and demands an increase rather than a reduction in spending.
- 22 Oct 2007
Czech Republic: Government to entice foreign workers in bid to counter labour shortageThe unemployment rate recorded for the first quarter of 2007 was 6.1%, and this figure fell to 5.3% in the second quarter of the year, which represents the lowest rate of unemployment in the Czech Republic for the past nine years. The Czech economy is thus starting to experience a labour shortage, which threatens future economic growth. The lack of employees is forcing employers to both increase wages and look to other countries to fill gaps in the labour force.
- 01 Oct 2007
Czech Republic: Representativeness of the social partners: Agricultural sector – Czech RepublicThe aim of this representativeness study is to identify the respective national and supranational actors (i.e. trade unions and employer organisations) in the field of industrial relations in the agriculture sector in the Czech Republic. In order to determine their relative importance in the sector’s industrial relations, this study will, in particular, focus on their representational quality as well as on their role in collective bargaining.
- 20 Aug 2007
Czech Republic: Proportion of self-employed people on the riseIn 1989, self-employed persons constituted about 1% of employment in the Czech Republic. Since 2000, their share of total employment has risen to almost 20%, one of the highest figures in the EU. However, some self-employed people legitimately combine self-employment with a regular employment relationship, in other words, waged work. At the same time, ‘false’ self-employment also occurs. A mixed picture emerges with regard to income prospects for self-employed persons.
- 13 Aug 2007
Czech Republic: Unions resolutely opposed to public finance reformsIn June 2007, the largest trade union organisation, the Czech-Moravian Confederation of Trade Unions, along with the Association of Autonomous Trade Unions, organised a demonstration in protest against the government’s draft public finance reforms. The protestors deem the proposed reforms to be particularly unjust to low-income families, those with children, pensioners and employees.
- 06 Aug 2007
Czech Republic: Trade unions protest at planned public finance reformAt a national meeting of representatives, the Czech-Moravian Confederation of Trade Unions (ČMKOS) expressed its fundamental disagreement with the forthcoming government reform of public finances, and called for a demonstration on 23 June 2007 to protest against the proposals. The Association of Independent Unions supported ČMKOS in this action. However, the employers have welcomed the reforms, even stating that they do not go far enough.
- 24 Jul 2007
Czech Republic: Employee financial participation in the New Member States — Czech RepublicThis report describes the current situation in relation to employee financial participation (EFP) in the Czech Republic.
- 23 Jul 2007
Czech Republic: Union confederation evaluates sectoral-level collective bargaining in 2007The largest trade union association in the Czech Republic, the Czech Metalworkers’ Federation OS KOVO, published its comprehensive overview of the course and results of negotiations for higher-level collective agreements for 2007 for the following sectors: the electrotechnical, aviation and metallurgy industries and technical vocational education.
- 16 Jul 2007
Czech Republic: Social partners agree to Labour Code amendmentsThe largest employer and trade union organisations in the country, the Confederation of Industry of the Czech Republic and the Czech-Moravian Confederation of Trade Unions, have agreed to significant amendments to the Labour Code. Both sides presented a joint proposal to the Ministry of Labour and Social Affairs, which is currently drafting a technical amendment to the code.
- 16 Jul 2007
Czech Republic: Trade union developments at major car manufacturerFolowing initial problems in collective bargaining at international car manufacturer Toyota Peugeot Citroën Automobile, the company now offers workers a sophisticated package of employee benefits. Both the trade unions and the employer are satisfied with the current level of cooperation. Founded in 2002 with the joint investment of Toyota and PSA Peugeot Citroën, production began in February 2005 and the company employs 3,500 people today.
- 13 Jun 2007
Czech Republic: Industrial relations developments 2006 — Czech RepublicFor the Czech Republic, 2006 was a year of elections to the Chamber of Deputies (2-3 June) and the Senate (20-21 October) of Parliament of the Czech Republic, as well as local elections (20-21 October).
- 04 Jun 2007
Czech Republic: Building Workers Trade Union holds fifth congressIn February 2007, the fifth congress of the Building Workers Trade Union took place in Prague. More than 120 trade union delegates, representing over 24,000 union members, assessed the period since the last congress in 2003 and set new objectives for the period leading up to 2010. The congress adopted two concluding resolutions on collective bargaining and the liberalisation of employment law.
- 04 Jun 2007
Czech Republic: High level of self-employment in construction industryThe general trend towards downsizing and flatter organisational structures is driving companies to replace dependent employees with sole traders. In this way, companies aim to cut labour costs and attain greater independence from the labour market. The construction sector is particularly well placed to implement a policy of this kind: individual contracts can be divided into smaller subcontracts and companies can then hire specific workers as required.
- 04 Jun 2007
Czech Republic: Czech doctors strike in protest against low wagesIn February and March 2007, a large number of Czech doctors went on strike in protest against the insufficient payments of the General Health Insurance Company for the treatment of patients. The protest was widely supported in the Bohemia and Moravia regions, despite some criticism from the Association of General Practitioners which considered the action to be counter-productive. Nevertheless, this action may be an indication that further protests will follow.
- 04 Jun 2007
Czech Republic: Security forces protest against new legislationIn late February 2007, police officers and other members of the security forces took part in a demonstration against the Service Act on the service relationship of members of security forces. The Czech News Agency estimates that up to 2,000 people participated in the protest. Most of the protesters were police officers and firefighters.
- 18 May 2007
Czech Republic: Gender and career development — Czech RepublicThe importance of equal opportunities and gender mainstreaming has risen in the Czech Republic during 1990s, but it is not still sufficiently supported. The attitudes in society change very slowly. Women still have worse position in the labour market as compared to men – their wages and career opportunities are lower. Unfortunately, social partners are not interested in this topic.
- 18 May 2007
Czech Republic: Representativeness of the social partners: Telecommunications sector - Czech RepublicThis sectoral study examines the representativeness of the main industrial relations actors in the telecommunications sector in the Czech Republic as of May 2006.
- 07 May 2007
Czech Republic: Unions at Škoda Auto threaten strike action for higher wagesTrade unions at the country’s largest automobile manufacturer, Škoda Auto, are demanding a substantial salary increase. According to news reports, the trade unions are prepared to organise a general meeting with one-hour token strikes in all shifts if no agreement is reached on the pay rise. The chair of the Škoda union refused to rule out the possibility of a subsequent strike for an indefinite period of time should there continue to be no progress in reaching an agreement. A similar dispute in the company two years ago eventually concluded in a 7% pay increase.
- 27 Apr 2007
Czech Republic: Economically dependent workers in the Czech RepublicIn the Czech Republic, economically dependent work has been increasing across sectors over the past decade. Officially, this category of workers belongs to the category of self-employed people and they work for an employer under a contract in line with the Czech Commercial Code. However, these workers are not covered by provisions of the Labour Code but they are included in the social security system and are therefore required to pay premiums on pension and health insurance plus a contribution to state employment policy. To control the presence of economically dependent work in the labour market, debate currently focuses on how to reduce non-wage labour costs, such as social insurance, and to encourage employers to use standard employment contracts.
- 23 Apr 2007
Czech Republic: Government to grant residence permits to selected foreign workersThe Czech Republic is offering selected qualified foreign workers the option of obtaining permanent residence permits after only two and a half years of living and working in the country, compared with the normal period of five years. The project participants will benefit from a 30-day protection period in the Czech Republic in order to find a new job, unless they had lost their previous job through their own fault. Permanent residence is also offered to the participant’s family, provided the participant passes all relevant tests.
- 23 Apr 2007
Czech Republic: Shortage of hospital doctors due to new Labour Code provisionsAmendments to the Labour Code mean that hospitals have less recourse to overtime on the part of doctors and must pay the same rate for work on standby as for standard working hours. The primary aim of the reform was to improve the quality of medical care by ensuring that doctors would not be too tired to work during excessive periods of overtime. Nevertheless, the situation has incurred substantial costs for employers, and some hospitals are negotiating separate agreements with doctors in order to avoid staff shortages.
- 10 Apr 2007
Czech Republic: New technology and respect for privacy at the workplaceThe use of new information and communication technologies (ICT) at the workplace has spread rapidly in recent years, raising numerous issues for employers, employees and their representatives, especially in terms of the relationship between workers’ privacy and employers’ need to control and monitor the use of ICT. This article examines current legislation in the Czech Republic, which is specifically aimed at the issue of privacy at the workplace and which tries to strike a balance between employees’ and employers’ rights in relation to this matter.
- 10 Apr 2007
Czech Republic: Companies receive health and safety awardsIn 2006, a total of 14 enterprises met the requirements of the ‘Safe enterprise programme’, achieving recognition for being a ‘safe enterprise’. The programme, which was launched by the Ministry of Labour and Social Affairs in 1996, aims to promote cooperation between employees and company management in improving safety at work.
- 02 Apr 2007
Czech Republic: New collective agreement at Czech RailwaysOn 21 December 2006, a new company-level collective agreement for 2007 was signed at the Prague headquarters of Czech Railways. The agreement, which governs relations between the contractual parties in 2007, took more than two months to negotiate. Among the provisions of the agreement is a 7% increase in tariff wages for employees at Czech Railways - the largest employer in the Czech Republic.
- 02 Apr 2007
Czech Republic: Czech manufacturer awarded EU grant for company management projectThe Czech manufacturer of traditional household appliances, ETA a.s., located in the town of Hlinsko in the centre of the Czech Republic, has been awarded a subsidy from the European Social Fund (ESF) for one of its projects. The project, entitled ‘Introduction of a process management system and subsequent implementation of the Balanced Score Card (BSC) method at ETA a.s.’, aims to increase the potential of the workforce and ensure a more efficient company management. The project will be implemented over the two-year period 2007-2008.
- 08 Mar 2007
Czech Republic: Provisions available to parents in support of work–life balanceThe issue of work–life balance is becoming is attracting wider public interest in the Czech Republic, not only among human resources professionals and the social partners but also with respect to research activities. Research in the field confirms that the prevalence of traditional role division is still quite common in households in the Czech Republic, although several legislative steps have been taken in recent times to balance gender differences.
- 08 Mar 2007
Czech Republic: Union confederation outlines its programme for 2007At the end of October 2006, the general meeting of the Confederation of Industry of the Czech Republic (SP CR) approved its programme declaration in addition to the annual budget for 2007. The programme is based on the agreed strategy of SP CR for the period 2005–2007, and takes into account the present political situation in the Czech Republic. In outlining the confederation’s key objectives for 2007, the document covers a number of areas to be addressed, such as the need for clearer legislation and taxation, as well as issues concerning the labour market, social security, research and development, infrastructure and the environment.
- 08 Mar 2007
Czech Republic: Disputes over tendering put jobs in forestry at riskIn December 2006, the Association of Forestry Businesses called for companies in the sector to join them on strike alert as a result of ongoing disputes concerning tenders issued by the largest forestry company in the country, Lesy CR. The Competition Protection Office obliged the company to issue its tenders in accordance with the Public Tenders Act. Following a period of dispute in the courts, Lesy CR decided to cancel all contracts won in 2005 and announced new tenders in all areas of its operations. The companies losing their 2005 contracts have contested the transparency of the new tender procedures and fear that the loss of work will result in significant job losses. New contracts are expected to be signed in February 2007.
- 08 Mar 2007
Czech Republic: Predicted wage increase will affect only a minority of workersWhile it is predicted that the average gross monthly wage will increase in the Czech Republic, it is unlikely that this will have any real impact on a large proportion of the country’s working population. In fact, some analysts predict that there will be a fall in real incomes for some workers, if incomes do not at least grow at the same level as the rate of inflation. At the same time, although Czech purchasing power has increased, the average pay of an employee in the Czech Republic is still only a fraction of that of employees in other European countries, while wage differentiation between regions and professions also persists.
- 19 Feb 2007
Czech Republic: Employer organisation plays active role in human resources projectsThe Confederation of Industry of the Czech Republic, the largest employer organisation in the country, is involved in a large range of activities. In addition to its work in the area of social dialogue, where it defends employers’ interests, it also provides advice to business people, as well as educational and legal services. Moreover, the confederation has been active in human resources development for a number of years.
- 12 Feb 2007
Czech Republic: Labour market opened to Bulgarian and Romanian workersSince 1 January 2007, the Czech Republic has opened up its labour market to allow the free movement of labour from the two new EU Member States, Bulgaria and Romania. According to the Czech social partners, allowing the free movement of workers from these countries should not threaten the stability of the domestic labour market.
- 12 Feb 2007
Czech Republic: Social partners hold mixed views on temporary agency workThe congress of the Czech-Moravian Confederation of Trade Unions, the largest trade union organisation in the Czech Republic, was held in November 2006. Among the topics discussed by the delegates was the issue of flexible work methods. The trade unions discussed the problems in the use of temporary agency employment, which is evidently on the increase. However, businesses and macroeconomic analysts do not agree with those trade unions that are pointing to the potential abuse of this type of employment.
- 12 Feb 2007
Czech Republic: Collective bargaining in the hotels and tourism sectorThe Czech-Moravian Trade Union of Catering, Hotels and Tourism carries out an annual assessment of the terms of collective agreements concluded with companies, which it then uses as a basis to formulate collective bargaining requirements for the following year. The results of the 2006 assessment show that the scope and structure of commitments contained in collective agreements have been preserved in comparison with 2005, and that there has been no reduction in the quality of the separate points of agreements.
- 29 Jan 2007
Czech Republic: Unions criticise unequal treatment of temporary agency workersThe new employment act in force since 1 October 2004 sets out the employment rules for temporary work agencies according to the requirements of Convention No. 181 of the International Labour Organisation. At the same time, the Labour Code incorporates a new concept, defined as ‘agency employment’. However, the Czech Metalworkers’ Federation claims that the principle of an agency employee being entitled to the same remuneration as a regular employee in the same position is not respected in practice by some employers.
- 29 Jan 2007
Czech Republic: Ongoing dispute between public bus company and regional authoritySince August 2006, the Ústí region in the northwest of the Czech Republic has been experiencing disruptions in its public bus service, as a result of a dispute between representatives of the Ústí Regional Authority and the Ústí Region Transport Company (DPÚK). DPÚK employees thus face uncertainty about the future of their jobs with the company.
- 29 Jan 2007
Czech Republic: Gender pay gap shown to be highest in top jobsBased on a labour market analysis carried out between 1993 and 2005 by the Czech Statistical Office, women’s monthly wages are significantly lower than those of men. On average, women earn three quarters as much as men do. In an effort, to achieve gender equality in the Czech labour market, the two main social partner organisations have undertaken projects in this field.
- 22 Jan 2007
Czech Republic: Employers opposed to wage increase demand by unionThe Czech-Moravian Confederation of Trade Unions is requesting a nominal wage increase of 7% in companies in 2007 According to the federation, this increase is necessary in the context of the rising demand for skilled labour in the Czech Republic. Employers regard this demand as being unrealistic and potentially harmful to businesses.
- 22 Jan 2007
Czech Republic: Metalworkers’ federation completes project on European Works CouncilsThe Czech Metalworkers’ Federation OS KOVO will soon have completed its second project on European Work Councils (EWCs). Both projects on EWCs have been funded by the European Commission. According to OS KOVO, the presence of numerous foreign companies in the Czech Republic, amounting to approximately 280 companies to date, was the reason for carrying out the two projects.
- 11 Jan 2007
Czech Republic: Controversy over new workplace health and safety legislationIn January 2007, a new Labour Code governing basic regulations for health and safety at work, among other things, came into effect. In addition, Act No. 309/2006 Coll. on occupational health and safety has also come into effect. The act contains key provisions regarding the professional competency of those working in the area of occupational health and safety. However, the new legislation has caused divisions among employers and the trade unions in this area. As a result, the Chamber of Commerce has filed a complaint with the Constitutional Court of the Czech Republic claiming that some of the provisions of the new health and safety legislation are unconstitutional.
- 09 Jan 2007
Czech Republic: Opposition to new law on union plurality in collective bargainingFrom 1 January 2007, new generally binding labour legislation, which will include new provisions concerning trade union plurality, is due to come into effect. However, the largest employer organisation, the Confederation of Industry of the Czech Republic, is objecting to the proposed new organisation of relations between social partners in enterprises. Minority trade unions are also opposed to the new amendments, which they argue discriminate against the smaller trade union bodies.