Czech trade unions promise ‘hot autumn’ over planned government reforms

Josef Středula, photo: CTK

Czech trade unions on Friday criticized the government’s policy statement which they see as the strongest attack on employees’ rights since the fall of communism. The unions warn that the policies of the right-of centre coalition will not improve the state of public finances but will irreversibly damage the Czech welfare state. Representatives of the unions said they were ready to talk, but promised a ‘hot autumn’ should the government not listen.

Josef Středula,  photo: CTK
At Friday’s news conference, trade union leaders said they were ready to act if the Czech government does not listen to their arguments. They sharply rejected the government’s policy statement which they said would dismantle the Czech welfare state. Josef Středula is the head of the Czech Metalworkers’ Federation, the country’s biggest trade union.

“We are very unhappy about the official programme of the Czech government because it goes against the common people and common workers, and we want to talk to the government at tripartite level or special meetings. If the prime minister wants to talk to us, that’s a good signal. But talking and changing their decisions, these are two different things.”

Earlier this week, the incoming Czech government approved its policy programme which includes major budget cuts and plans to overhaul the country’s pension and health care systems. Finance Minister Miroslav Kalousek also said that this year’s austerity measures would be followed by even bigger cuts next year that should bring the state budget deficit down to 135 billion crowns. The coalition also plans to liberalize the Czech labour code which should be more flexible – or weaker, in the trade unions’ view. But the unions also warn that reducing social and other benefits will not automatically ensure a balanced budget.

“If we reduce all the social benefits, the deficit of the state budget will still amount to some 120 billion crows. That’s not good. We need to raise taxes, including social security payments, corporate tax, and reduce the grey market and corruption. That’s our first reaction.”

Mr Středula from the Czech Metalworkers’ Union says Prime Minister Nečas and other members of his cabinet promised to meet with trade union leaders once the government is voted in next week. The outcome of the negotiations will determine what course of action the unions will take.

“I think the autumn will be very difficult and hard; we are ready to protest and to go on strike. But first we want to negotiate, we want to reverse these decisions and we want the Czech Republic to be in better shape than that outlined in the government’s policy statement.”