Strife-free agreements signed in transport sector

In December 2012, two important employers in the Czech Republic’s transport sector – Czech Airlines and Czech Railways – concluded collective agreements. Both companies are struggling financially, but the bargaining process was seen as largely smooth and constructive, despite a history of unions in this sector being highly competitive with each other. Current working conditions have been maintained and railway workers even won a small 1.8% pay increase.

Background

The biggest employer in air transport, Czech Airlines (ČSA), had a workforce of around 1,000 in 2011. Czech Railways (ČD), the largest employer in the railway transport sector, had 26,400 workers in 2012. The two companies successfully concluded collective agreements with union organisations in December 2012.

Several union organisations represent workers at the companies, as is typical among leading employers in their field of operation. Different unions focus on certain groups of workers, such as pilots, engine drivers and cabin crew.

To some degree, there is rivalry among unions within these companies which makes collective bargaining difficult as each one strives to secure better working conditions for its members (CZ0710039Q, CZ0809029Q, CZ0801029I). Nevertheless, employers and employees have agreed that the collective bargaining process in 2012 was smooth and constructive.

ČSA – business as usual

The collective agreement at ČSA, valid from 1 January 2013 to 31 December 2014, is between the employer and six union organisations: the Czech Airline Pilots’ Association (CZALPA); the Czech Cabin Crew Union (OOPL); the Trade Union of Aviation Technicians and Engineers (CAAE); the Trade Union of Aviation Employees (OSZL); the Czech Association of Air Traffic Controllers (CZALDA); and the Trade Union of Transport (OSD).

ČSA’s business results are a key feature of the agreement. The airline has not made a profit since 2008, and in 2011 ČSA registered a loss of CZK 241 million (€9.4 million as at 18 February 2013). Therefore no significant changes in pay or conditions were expected, and employee benefits were maintained at the same level as in the two previous years.

A guarantee of jobs for pilots and flight attendants was included in the deal which specified that if dismissals have to be made, senior employees would keep their positions. Wages and salaries were frozen at previous year’s levels.

ČSA President Philippe Moreels said:

We are happy that the talks we mutually held over the last weeks were highly professional, in the most constructive manner and without unnecessary emotions, after a long time free of pushing for individual interests.

ČD – small increase in wages

The ČD company collective agreement, valid until the end of 2013, was concluded between management and nine unions: the Railway Trade Unions (OSŽ); the Engine Drivers’ Federation of the Czech Republic (FSČR); the Federation of Train Crews (FVČ); the Union of Railway Employees (UŽZ); the Federation of Carriage Examiners (FV); the Federation of Railway Workers of the Czech Republic (FŽ ČR); the Guild of Engine Drivers (ČSCR); the Democratic Union of Trade Unionists (DUO); and the Trade Union of Employees in Network Sectors (OSZSO).

This collective agreement also maintains current employee benefits. Holiday entitlement stays the same and wages have been increased slightly – the scale wage rising by 1.8%.

Vladislav Vokoun, Vice-Chair of OSŽ and Chair of OSŽ’s negotiating committee at ČD, said he considered this the best that could have been achieved in the bargaining process. He said:

The most difficult part of the talks concerned wages. The company’s compass is not infinite. Competition has become stiffer and takes jobs. VAT and prices for traction energy have increased…as a result, our bargaining position was not easy at all. Moreover, we had to be careful and avoid the situation where excessive demands on our side could result in dismissals.

ČD has been making long-term losses, although these losses have been lower in recent years. Profit in 2011 was mainly due to sales of ČD’s assets.

Sona Veverkova, Research Institute for Labour and Social Affairs