Spidla calls for open dialogue with labour unions

Prime Minister Vladimir Spidla has called for open dialogue to relieve mounting tension with labour unions over his government's proposed fiscal reforms. The reform package - which is now being considered by parliament - includes layoffs and pension cuts in the public sector that are opposed by the country's largest union umbrella group, the Czech-Moravian Federation of Trade Unions. Mr Spidla said in a newspaper interview the only way to resolve the conflict was to engage in constant dialogue. Prague could see demonstrations by hundreds of thousands of public sector workers in September, as parliament prepares to vote on the package.