Czech trade unions have taken a strong stance against the government’s budget consolidation package, prompting a strike alert. The announcement was made by Josef Stredula, the chairman of the Bohemian-Moravian Confederation of Trade Unions (CMKOS), following a meeting of the unions. Stredula emphasized the seriousness of the situation and criticized the government for its lack of genuine social dialogue with the unions. He expressed concerns that the proposed measures would disproportionately affect workers, their families, and pensioners.

The Tripartite Council, consisting of government representatives, unions, and employers, engaged in discussions regarding the budget consolidation package. However, after a nearly four-hour meeting, Prime Minister Petr Fiala dismissed the strike alert as irresponsible and expressed the government’s determination to proceed with its proposals. Chamber of Commerce President Vladimir Dlouhy also voiced criticism, stating that while he understood the necessity of the government’s measures for consolidating public finances, he expected any adverse impact on businesses to be compensated elsewhere, such as through a reduction in administrative burden.

The trade unions plan to hold a press conference to detail the specific impact of the austerity measures on families. Stredula estimated the annual impact to be over CZK 100,000. Meanwhile, Prime Minister Fiala defended his government’s actions, asserting that ongoing dialogue had taken place with employee representatives and emphasizing the need for cost-saving measures.

The unions are closely monitoring the situation and have called for independent union associations to collaborate. Stredula described the strike alert as a moderate measure, citing the unions’ range of options. The last time a strike alert was declared in the country was a decade ago.

Among the austerity measures proposed in the consolidation package are an increase in corporation tax, excise tax on tobacco and alcohol, gambling and property taxes, and the re-introduction of sickness insurance payments. Furthermore, the government plans to implement pension reforms, including raising the retirement age, introducing guaranteed pensions, adjusting pension indexation, and revising rules on early retirement. The main objective of the government is to reduce the public deficit through cost-cutting measures, primarily by reducing state subsidies.

The declaration of a strike alert by the trade unions highlights the growing tensions between workers and the government in the Czech Republic. It remains to be seen how the situation will unfold and whether negotiations and compromise will be reached to address the concerns of all stakeholders involved.

Article by Prague Forum