Labor Code causes division

Prime Minister Petr Nečas' proposal to revamp the Labor Code has elicited both strongly negative and positive reactions from differing sides, and the prime minister even reversed one of its key tenets just a day after he first outlined his plan in the Aug. 30 edition of Hospodářské noviny (HN).

His proposal to allow employers to dismiss employees without reason caused the strongest opposition, and he told Právo Aug. 31 he had reconsidered and would not forward that proposal.

The proposed changes are meant to stimulate the economy and job market by giving employers greater flexibility in hiring and firing. Economists and business representatives welcome the move, in the belief it will create a more attractive labor market, while unions say it is an affront to workers' rights.

The proposal shortens the notice period for layoffs from two months to one, while the severance pay period would be lengthened by one month. In effect, employers would pay one less month of wages while the government would be paying one more, leaving employees unaffected. Additionally, employers could have an unlimited number of fixed-term work contracts, and the trade unions would have less influence, a suggestion that sparked outrage.

"Nečas has given people a clear signal he wants to misuse the crisis for a drastic reduction of rights of employees and unions," Jaroslav Zavadil, head of the Bohemian and Moravian Confederation of Trade Unions, told the Czech News Agency.

Czechs will have the worst standing in workers' rights in the EU thanks to the proposed changes and the government's austerity measures, Zavadil added.

"With the [proposed amendment], Nečas is indirectly looking for social conflict," Zavadil said.

Nečas proposed more radical changes than those proposed by current Labor and Social Affairs Minister Jaromír Drábek (TOP 09), which Nečas said were not ambitious enough.

The coalition government will discuss the proposals this month but have until the end of the year to finalize an amendment. The discussions will also include tripartite talks between the government, trade unions and employers' associations. At a tripartite talk last week, employers expressed opposition to two separate proposals and requested instead the government prepare a single, comprehensive amendment.

"The current Labor Code contradicts the Constitution. The amendment does not solve these mistakes. Instead of doing one thing twice, let's do it once and correctly," Confederation of Industry President Jaroslav Míl told the Czech News Agency.

Claire Compton can be reached at
ccompton@praguepost.com