Union head warns strike is likely over taxation of benefits

The head of the Transport Union, Luboš Pomajbík, has warned that a number of branches of Czech industry could strike anytime after February 22. He made the announcement on Friday after a meeting between several of the country’s unions. Union leaders, including those at Czech Railways, are against new regulations subjecting benefits to the value-added tax. Mr Pomajbík called the new regulations an attack on the unions and suggested that a strike was inevitable, unless the new regulations were struck down. As of January 1 benefits – from employee discounts to the use of company cafeterias - are subject to VAT.