Trade unions call off nationwide transport strike

Czech trade unions have just called off a nation-wide strike in public transport planned for Thursday. The unions have been pushing for lower taxation of employee benefits, and after a meeting on Wednesday, union leaders decided to give politicians more time to deal with their demands.

After weeks of wrangling, Czech transport trade unions called off a nation-wide strike planned for Thursday. After a round of last-minute talks, trade union leaders said that a ruling of the Czech Parliament’s lower house in favour of their demands two days ago was crucial to the decision.

On Tuesday, MPs approved a change of law lowering the tax bracket on employee benefits, which was the core of trade unions’ demands. The unions are pushing for the return of benefits taxation to 2009 levels. These include free transit passes for employees and their families, subsidized food and accommodation.

The caretaker government of Jan Fischer raised the VAT on employee benefits; as of January 2010, they are taxed on the basis of their market value, rather than the price they are sold to employees.

The trade unions’ demands were supported by the left-wing Social Democrats, but strongly rejected by some of the right-of-centre parties, including the Civic Democrats and TOP 09. These control Parliament’s upper house, the Senate, which is therefore expected to reject the bill at Friday’s session.

However, the Christian Democrats, who frequently tip the scales in both chambers of Parliament, offered trade unions a compromise deal – if they call off the strike, their MPs will later help overturn the Senate’s vote in the lower house.

President Václav Klaus entered the fray on Tuesday attacking the unions for what he considers to be an abuse of their power. According to the president, trade unions should defend employees against employers, but they are now fighting the state. Mr Klaus also said he would not sign the bill into law, should it make it that far in the legislative process.

If this is the case, the bill will once again return to the lower house, and if the Christian Democrats keep their promise and overturn the senate as well as the presidential veto, MPs would vote the bill into law, meeting the unions’ demands.

However, trade unions leaders warned on Thursday that if there is a hitch anywhere along line, they would quickly organize another strike.