Collective bargaining began at Czech Railways (České dráhy, ČD [1]) on 5 October 2007, when the employer presented the draft of a new collective agreement. The trade union federations operating at Czech Railways agreed on a common strategy and began the actual bargaining on 29 October. The trade unions taking part in the bargaining were: the Trade Union Association of Railway Workers (Odborové sdružení železničářů, OSŽ [2]), the largest trade union organisation operating at Czech Railways, the Engine Drivers’ Federation of the Czech Republic (Federace strojvůdců České Republiky, FS ČR [3]), the Federation of Train Crews (Federace vlakových čet, FVČ [4]), the Union of Railway Employees (Unie železničních zaměstnanců, UŽZ [5]), the Federation of Carriage Examiners (Federace vozmistrů, FV) and the Federation of Railway Workers of the Czech Republic (Federace železničářů, FŽ ČR [6]). The newly established Engine Drivers’ Guild (Cech strojvůdců, CS ČR) also took part in the negotiations. Despite the distance between the positions of the trade unions and the employers – mainly concerning the increase in wage tariffs – the collective agreement was signed on 18 December 2007. The management of ČD and the trade unions described the negotiations as constructive.[1] http://www.cd.cz/[2] http://www.osz.org/[3] http://www.fscr.cz/[4] http://www.fvc.cz/[5] http://www.uzz.cz/[6] http://www.federace.unas.cz/
A 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.
Collective bargaining
Collective bargaining began at Czech Railways (České dráhy, ČD) on 5 October 2007, when the employer presented the draft of a new collective agreement. The trade union federations operating at Czech Railways agreed on a common strategy and began the actual bargaining on 29 October. The trade unions taking part in the bargaining were: the Trade Union Association of Railway Workers (Odborové sdružení železničářů, OSŽ), the largest trade union organisation operating at Czech Railways, the Engine Drivers’ Federation of the Czech Republic (Federace strojvůdců České Republiky, FS ČR), the Federation of Train Crews (Federace vlakových čet, FVČ), the Union of Railway Employees (Unie železničních zaměstnanců, UŽZ), the Federation of Carriage Examiners (Federace vozmistrů, FV) and the Federation of Railway Workers of the Czech Republic (Federace železničářů, FŽ ČR). The newly established Engine Drivers’ Guild (Cech strojvůdců, CS ČR) also took part in the negotiations. Despite the distance between the positions of the trade unions and the employers – mainly concerning the increase in wage tariffs – the collective agreement was signed on 18 December 2007. The management of ČD and the trade unions described the negotiations as constructive.
Restructuring at ČD
In 2007, ČD underwent fundamental structural changes, with more changes still to follow. The company was divided into ČD, which handles passenger transport, and a new parent company Czech Railways Cargo (České dráhy Cargo, ČD Cargo), which deals with freight transport. Another change is that the operation of railway infrastructure has been transferred from ČD to the state organisation Railway Infrastructure Administration (Správa železniční dopravní cesty, SŽDC), with some employees due to be transferred during 2008. Therefore, one important bargaining objective was that the collective agreement applies to employees of ČD, ČD Cargo and any other new subsidiaries of ČD, and that it deals with the transfer of employees from ČD to SŽDC.
Provisions of collective agreement
The collective agreement applies to both companies, ČD and ČD Cargo, and introduces some fundamental changes compared with the 2007 agreement (CZ0701049I). First, it contains provisions recognising the employment continuity of employees transferred between ČD and its subsidiaries and also SŽDC, ensuring that all employee benefits contained in the collective agreement are retained. The agreement also provides for severance pay for employees: more specifically, it annuls the link between the size of severance pay and supplemental insurance and introduces severance pay in the event of loss of capacity to work after 20 years of employment at ČD. It also regulates shared shifts. As far as wages are concerned, an increase of nine percentage points in the tariff composition was agreed and certain extra payments – for example, for shift work – were increased. The employer’s contribution to supplemental pensions and life insurance was also increased. On average, wages are set to grow by 7.6 percentage points. The trade unions are satisfied with the results of the bargaining and regard the collective agreement as being favourable.
Commentary
With about 55,000 employees, ČD is one of the biggest employers in the Czech Republic. As a result, great importance is placed on collective bargaining, which tends to be problematic due to the co-existence of several trade union federations. During the restructuring of ČD, the conclusion of a collective agreement applying to all subsidiaries is significant. At the same time, it is good news for employees that the management of ČD does not plan to further reduce employment levels in 2008.
Ondřej Novák, Research Institute for Labour and Social Affairs
Eurofound recommends citing this publication in the following way.
Eurofound (2008), New collective agreement signed at Czech Railways, article.
