Czech.Republic
Background information on industrial relations in Czech.Republic
- 19 Dec 2008
Czech Republic: Czech Republic: Temporary agency work and collective bargaining in the EUAlthough on the rise in the Czech Republic, agency employment is still in its early days compared to western Europe and is chiefly the domain of less qualified manufacturing labourers. Agencies (e.g. one of the market leaders Trenkwalder) themselves confirm that Czechs are still relatively unwilling to work in short-term jobs and still prefer long-term employment. It is expected, however, that the existing upward trend in the use of agency work will continue and it should take on the form common in western Europe.
- 11 Dec 2008
Czech Republic: Industrial relations in the public sector - The Czech RepublicThis report presents an overview of industrial relations in the central government and public sector in the Czech Republic
- 08 Dec 2008
Czech Republic: Trade union organises support fund for glassworkersThe Trade Union of Workers in the Glass, Ceramics, Glass Jewellery and Porcelain Industry is trying to find a way to help the 1,750 employees of the Bohemia Crystalex Trading group at its plants in Poděbrady and Světlá nad Sázavou. After the initiation of insolvency proceedings at both plants, workers have not received their September salaries. The trade union has thus called on its some 70 member organisations to make a special contribution to the union’s support fund.
- 08 Dec 2008
Czech Republic: Representativeness of the European social partner organisations: Railways 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 railway 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. The study is divided into two parts: the first part deals with railway transport operations, based on research carried out in 2006; the second part focuses on rail infrastructure, based on research completed in 2007
- 02 Dec 2008
Czech Republic: Police officers and firefighters demonstrate for more payIn October 2008, police officers, firefighters and prison guards took part in a demonstration outside the Ministry of the Interior of the Czech Republic, demanding pay rises and payment for overtime work. Overall, about 1,000 demonstrators took part, although the trade unions claimed that about 2,500 workers demonstrated. The Ministry of the Interior claimed that police officers demands were unreasonable, while it considered the firefighters’ demands legitimate.
- 02 Dec 2008
Czech Republic: Employers slam trade unions’ pay demandsEmployers are concerned about the trade unions’ pay demands for 2009, which they view as disproportionate. Whereas the Czech Chamber of Commerce is currently approving of a maximum increase in nominal wages of 6%, the trade unions are seeking a nominal wage growth of at least 8% in the private sector next year. The trade unions’ wage growth expectations for state employees in 2009 are also considered to be far removed from the government-approved budget.
- 24 Nov 2008
Czech Republic: Unions mobilise against planned closure of Siemens plantSiemens Kolejová vozidla, the leading manufacturer of rail vehicles in the Czech Republic and a subsidiary of the German-owned Siemens Transportation Systems, has announced the planned closure of its site in Prague with over 1,000 jobs threatened. Siemens plans to sell the plant by September 2009. The company’s decision is due to low Czech customer demand, global economic changes and the company’s global strategy, which envisages 17,000 redundancies.
- 20 Nov 2008
Czech Republic: First efforts at conciliation following month of civil unrestThe Czech-Moravian Confederation of Trade Unions, the largest trade union organisation in the Czech Republic, announced a ‘month of civil unrest’ starting on 21 May 2008. Trade unionists held a series of demonstrations outside government buildings, highlighting the contentious issues of pensions, public health, education, salaries and inflation. The government is resolute on maintaining its reform plans but has started negotiations with teachers’ trade unions.
- 14 Nov 2008
Czech Republic: Glass industry crisis continuesThe traditional manufacture of glass and porcelain in the Czech Republic is under serious threat, with companies belonging to the Bohemia Crystalex Trading group recently closing operations. As a result, glassworks in Světlá nad Sázavou, located on the frontier between Bohemia and Moravia, and in Poděbrady in central Bohemia have been closed down and production has been halted. About 2,000 employees did not receive their wages in September 2008.
- 14 Nov 2008
Czech Republic: Difficult round of collective bargaining begins at Czech RailwaysOfficial collective bargaining at Czech Railways has commenced, with the employer presenting a draft company-level collective agreement for 2009 to trade union representatives on 2 September 2008. Czech Railways is currently undertaking a complicated process of trying to find economies in material and wage costs. This strategy is reflected in the treatment of certain employee benefits in the draft collective agreement; therefore, a difficult round of bargaining can be expected.
- 14 Nov 2008
Czech Republic: ‘Air marshals’ demand higher payIn October 2008, Czech ‘air marshals’, who are among the best-trained police officers in the Czech Republic, formulated their pay demands. These agents are members of an elite undercover police unit which flies on aircraft, and their task is to neutralise any terrorist without putting passengers at risk. Given their high qualifications and the greater risk involved in their profession, they are demanding the highest extra pay component that police regulations permit.
- 14 Oct 2008
Czech Republic: Further job losses as part of ongoing restructuring at Czech PostCzech Post intended to close 179 of its branches throughout the Czech Republic and lay off another 2,500 employees in October 2008 as part of an ongoing restructuring process. The reason for this move is the management’s desire to streamline the company’s operations, centralise its activities and become more competitive in preparation for the company’s privatisation in 2009.
- 07 Oct 2008
Czech Republic: Employers press for adoption of euro in light of strong Czech currencyThe Czech currency has been appreciating in value against the euro and the US dollar over a long period. An important reason for the strengthening koruna is the improving performance of the Czech economy and the faith of investors. Nevertheless, the strong currency is beginning to threaten the business of Czech exporters. Employer organisations are urging the swift adoption of the euro in the Czech Republic to alleviate wage and other cost pressures.
- 07 Oct 2008
Czech Republic: One million Czech workers protest against government reformsThe ongoing tensions between the trade unions and government – which already lasted one year – escalated into one of the biggest strikes in Czech history. In June 2008, more than one million workers took part in a strike organised by the country’s largest trade union organisation. The strike resulted in widespread chaos, especially in health and transport services. However, there is no sign of the government abandoning its reforms.
- 23 Sep 2008
Czech Republic: Czech Republic: Industrial relations developments in Europe 2007In the manufacturing sector variable pay accounts for one of the lowest shares of basic pay (senior management 15%, middle management 13%, specialists 14%, administrative workers 14%, manual labourers 20%).Variable pay often functions in the manufacturing sphere as a tool for limiting employee absenteeism (pay is increased and decreased according to absence rates) – 49% of manufacturing firms. But the number of companies that tie employees’ variable pay component solely to team performance is growing, and fewer companies tie it to the individual’s results.
- 08 Sep 2008
Czech Republic: Multinational retail chains in breach of labour lawThe Czech Republic’s State Labour Inspection Office (SÚIP) carried out 157 checks of 19 multinational retail chains for their observance of labour law regulations in 2007. The inspections uncovered a total 401 breaches of the regulations. However, SÚIP only imposed fines amounting to CZK 745,000 (about €30,387). The most frequent types of breaches involved violation of the country’s Labour Code provisions.
- 04 Sep 2008
Czech Republic: Czech Republic: Representativeness of the European social partner organisations – Sea and coastal water transportThe Czech Republic is a landlocked state and therefore maritime and coastal water transport is not an economically significant sector in the Czech Republic. However, up to the mid 1990s the Czech Republic had one of the largest inland maritime fleets in the world – the state firm Czech (formerly Czechoslovak) Maritime Fleet [Česká (Československá) námořní flotilla] owned 14 maritime cargo ships. After privatisation, in which Viktor Kožený was a key figure, all the ships were sold off and now the Czech Republic does not own a single maritime vessel. Czech sailors thus only work for foreign firms.
- 08 Aug 2008
Czech Republic: Large-scale strike in protest at public finance reformTrade unions continue to be dissatisfied with public finance reform in the Czech Republic. The Czech-Moravian Confederation of Trade Unions, the country’s largest trade union organisation, held an hour-long strike on 24 June 2008. Points of controversy remain the same: low salaries in the public sector, pension reform and the privatisation of health insurance companies and university hospitals.
- 17 Jul 2008
Czech Republic: Anti-discrimination law still in limboThe Anti-discrimination Act, through which the Czech Republic will adopt European law, has not yet come into force. President Václav Klaus vetoed the act, saying that it stood for the elimination of natural inequalities and was problematic. Meanwhile, some of the newer acts, such as the new Labour Code, include a reference to this law, thereby creating a gap in the country’s legislation. The act will be presented in parliament for an up-or-down vote on the president’s veto.
- 16 Jul 2008
Czech Republic: Representativeness of the European social partner organisations: Post and courier services – 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 post and courier services 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.
- 10 Jul 2008
Czech Republic: Representativeness of the European social partner organisations: Manufacture of sugar – 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 sugar manufacturing 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.
- 26 Jun 2008
Czech Republic: Constitutional Court rejects sickness benefit reformThe Czech government has lost an important battle in the Constitutional Court of the Czech Republic concerning the implementation of its public finances reform act. Basing its decision on every citizen’s equal right to material security, the court repealed the part of the act stipulating that the first three days of sickness will be unpaid. The change in legislation will take effect from 30 June 2008. Opposition parties and trade unions welcomed the court’s ruling in this regard.
- 03 Jun 2008
Czech Republic: Trade union confederation announces strike alert over planned reformsAt the beginning of March 2008, the Czech-Moravian Confederation of Trade Unions (ČMKOS) announced a strike warning in protest against government reforms. ČMKOS represents 32 trade unions with about 540,000 members; this is the first time that it has announced a strike warning for the entire confederation. The trade unions are protesting against the reform of public finances and the planned reform of the healthcare and pension systems.
- 03 Jun 2008
Czech Republic: Teachers threaten strike action over payIn spring 2008, the Czech-Moravian Trade Union of Workers in Education were planning to organise the biggest strike in the Czech Republic’s recent history. They have threatened to take strike action if teachers do not get the salary increase they are demanding – this would in the closure of schools for an entire week just before the start of the summer holidays. After considering a proposal for funding put forward by the government, the trade union will then decide on what course of action to take.
- 29 May 2008
Czech Republic: Migrant workers could offset skills shortage under proposed green card schemeA recent survey carried out by the Confederation of Industry of the Czech Republic reveals that, if foreign workers could be issued green cards to work legally in the country, there would be plenty of demand for their services from local employers. In the next two years, Czech companies will require about 5,000 foreign workers, many with a secondary school or higher qualification. However, trade unions have concerns about the proposed green card system.
- 08 May 2008
Czech Republic: Unions claim Court’s repeal of Labour Code will diminish trade union roleA group of parliamentary members and right-wing political party senators lodged an objection with the Czech Constitutional Court against the new Labour Code, which took effect from 1 January 2007. The court conceded to some of their objections and repealed the relevant provisions of the act. The judgement has generally been perceived as a measure which will restrict the power of trade unions. Employers agree with the decision while employee representatives are opposed to it.
- 24 Mar 2008
Czech Republic: Ombudsman criticises conditions for temporary agency workers at Škoda AutoRecent findings by the Czech Ombudsman on conditions for temporary agency workers at the leading Czech company Škoda Auto have lent support to the trade unions’ criticisms of such employment. According to the findings, Polish workers hired through an employment agency had, contrary to law, experienced inferior working and wage conditions than those of permanent employees. Moreover, the Ombudsman disapproved of the Labour Inspectorate’s approach to the matter.
- 04 Mar 2008
Czech Republic: Tax break on meal vouchers to be scrappedIn January 2008, the Czech government drew up a draft act abolishing the tax break on meal vouchers. The public finances reform approved last year had planned on this step, but the tax benefits of meal vouchers were left unchanged in the final version of the reform. The new draft act now has a real chance of being passed, which has given rise to contradictory reactions. Some commentators believe that all sides will lose out, while others think it will make little difference.
- 25 Feb 2008
Czech Republic: Changes to insurance system curtail sickness benefitsIn January 2008, several important changes to the sickness insurance system took effect. These changes result from Act No. 261/2007 Coll. on the stabilisation of public finances and are mainly designed to reduce public expenditure in the social domain. Meanwhile, the implementation of the new sickness insurance act has been postponed for another year. Trade unions and the main opposition party strongly oppose the changes to the sickness insurance system.
- 04 Feb 2008
Czech Republic: New collective agreement signed at Czech RailwaysA company-level collective agreement was successfully concluded at Czech Railways in December 2007 after more than two months of bargaining. The agreement covers about 55,000 employees and provides for substantial wage increases. The agreement is highly significant as it applies to both Czech Railways and its recently established subsidiary Czech Railways Cargo. Moreover, the management of Czech Railways does not envisage further lay-offs of employees in 2008.
- 01 Feb 2008
Czech Republic: Representativeness of the social partners: Gas 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 gas 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.
- 14 Jan 2008
Czech Republic: Social partners hold joint talks on improving working conditions in retail chainsOn 1 November 2007, discussions on improving working conditions in commercial chains were initiated by social partner representatives. The situation in supermarkets and hypermarkets is particularly critical, as workers often report adverse working conditions. The current higher-level collective agreement for the sector is set to expire on 31 December 2007. Although discussions are underway for a new agreement, the social partners remain divided over the issue of real wages.
- 14 Jan 2008
Czech Republic: Teachers strike for increase in education budgetOn 4 December 2007, teachers in the Czech Republic went on strike in demand of increased public spending on education. Although the government proposed to increase the education budget by almost CZK 1 billion (€38 million), the trade unions considered this amount to be insufficient. The strike is the first major industrial action taken by the country’s teachers since September 2003.
- 14 Jan 2008
Czech Republic: No increase in minimum wage planned for 2008The Czech government has announced that it will not increase the minimum wage for 2008. While employer representatives have endorsed the decision, the trade unions have expressed their fundamental reservations about the decision. This latest impasse represents yet another policy disagreement between the trade unions and government, following the unions’ protests against public finance and pension reforms in 2007.
- 14 Jan 2008
Czech Republic: Telework in the Czech RepublicA new Labour Code came into effect in the Czech Republic in January 2007. The new law widened the definition of work carried out away from the employer’s premises, and this is now understood to include telework although it is not actually specified. This article looks at the extent of telework in the Czech Republic and explores the progress in implementing the EU framework agreement on telework, concluded by the European social partners in 2002.