Strike threat is preview of what is to come

A spring of strife looms as transport workers threatened a strike, before stepping back, and other unions consider industrial action. As political tension over the possible strike increased, the Social Democratic Party (ČSSD) leader Jiří Paroubek accused the Civic Democrats (ODS) of "wanting a strike."

"The only explanation for the ODS's position is that it wants a strike" to get union members on the street to polarize society, Paroubek told The Prague Post.

Public transit workers pledged to go on a five-hour strike March 4 at 4 a.m., in what one union leader described as an initial warning, but a compromise with Parliament to remove a tax on their benefits averted the strike at the 11th hour. The issue is still not settled, however, as President Václav Klaus says he will not sign the ammended law.

A previous strike, scheduled to take place March 1, was called off to give the government more time to meet union demands.

As the Chamber of Deputies pledged to amend the law, it appeared that the Senate was unlikely to approve it. Center-left parties that supported changing the law hold the majority in the chamber but not in the Senate. The Christian Democrats (KDU-ČSL) agreed to vote in favor of the changes if the union called of the strike, which they did.

The strike would have crippled the state-owned railways and transport in Prague.

The benefits at issue included discounted travel passes and meal coupons. Other unions, emboldened by the success of the strike threat, could withdraw their labor in the coming months, according to transport union officials.

"Parliament has made no changes; therefore, there is no reason to call off the strike," Luboš Pomajbík, chairman of the transport union, told The Prague Post as late as March 3. "Based on the opinions of some political parties, it seems they don't want the Senate to pass a resolution. The strike is the last resort, and it is not an end but the means. We have wide support among other unions."

A leading union official confirmed other unions are discussing the possibility of strike action.

"Negotiations with other unions are taking place, but, if they want to join us, it would probably be later than [March 4]," said Jana Kašparová, spokeswoman for the Czech-Moravian Confederation of Unions.

The transport union called the strike "an initial warning" to Parliament to remove increased value-added tax on benefits they receive. The ODS has called the strike threat "blackmail" and said an agreement had been close.

"The ODS was ready to amend the law on VAT within the agreed deadline of March 10. This was the result of the joint meeting with the prime minister, the chamber leadership and representatives of parliamentary parties. But we consider this threat of a strike an unacceptable form of blackmail," the party said in a statement.

It accused the government of looking weak. "We fear this sets a serious precedent for other strikes. The government is not ready to face this type of pressure."

ODS Chairman Mirek Topolánek turned down a meeting with Paroubek to discuss the issue.

"Paroubek can hardly be part of the solution, as he is part of the problem," Topolánek said, and accused Paraoubek of advocating what he called the "Greek way," leading to a path of state bankruptcy.

Paroubek retaliated by saying the ODS was making matters worse. "ODS leaders, who merely insult union leaders, are increasing tensions," he said. "We call on the ODS to engage in constructive negotiations on employee benefits."

Paroubek supported amending the law. "The damage incurred by the strike and its expansion to other sectors is a greater loss for the state budget than the impact of abolishing an administrative error," he said.

Paroubek said the government, employers and unions had agreed on the amendment to the law on VAT, but their efforts were intially thwarted by right-wing parties rejecting any change or compromise.

Prime Minister Jan Fischer said he was not against talks but was unsure what role the government could play with the deadline approaching, as the matter was in the hands of lawmakers and unions. He said the government did all it could to resolve the dispute.

Jaromír Drábek, deputy chairman of the right-wing TOP 09 party and chairman of the International Chamber of Commerce in the Czech Republic, was sharply critical of the unions. He claimed the strike threat is political, and the problem of benefit taxation is one that can easily be sorted out.

In an ominous turn, Klaus also said he will veto the reinstatement of full maternity benefits, recently passed by the Chamber of Deputies, as it would increase the state deficit. He took the same stance on rescinding the increased tax on benefits.

The Czech Republic has seen unemployment jump to 9.8 percent in January from 6.8 percent a year before. The economy shrank 4.3 percent last year.The law taxing employee benefits has been valid since January.

As any government formed after the May elections will likely have to make budget cuts, disputes between unions and lawmakers are a likely trend for much of 2010. 

- Petr Cibulka Jr. contributed to this report.

Tom Clifford can be reached at
tclifford@praguepost.com