The parties of the ruling coalition have agreed on a 15 percent wage hike for teachers and a 10 percent wage hike for other public sector employees as of November 1. Agreement on the salary increase was reached after Finance Minister Ivan Pilny raised the projected revenues for 2018 by 21 billion crowns. This was made possible due to an upgrade of the country’s growth estimate from 2.9 to 3.1 percent. Even so, ministers will have to find an additional 8 billion crowns to deliver on their promise. The coalition parties on Monday did not reach a consensus on whether universities will receive the additional 4.5 billion they asked for.
Trade unions from around the country are to gather in Prague next Thursday
for consultations ahead of the annual negotiations on wage hikes.
The trade union leadership should make a recommendation regarding the demands to be made.
Trade unions in the public sector are already on strike alert demanding that the government deliver on its promise to raise teachers’ wages by 15 percent as of November and by 10 percent for other public sector employees.
Thursday’s gathering will be attended by trade union representatives from Germany, Austria and Slovakia.
Finance Minister Ivan Pilný from the ANO party has increased the revenues
chapter in the 2018 draft budget by 21 billion crowns.
The minister confirmed this in a debate on Czech Television on Sunday, saying the ministry had upgraded its growth estimate for 2018 from 2.9 to 3.1 percent.
However the additional finances would still not cover the proposed wage hike for public sector employees. According to Pilny the budget would still be short of approximately 8 billion crowns.
The finance minister dismissed the prime minister’s proposal that this money could come from finances saved by individual ministries as unrealistic, saying ministry officials had made it clear they would spend their entire budgets.
The coalition parties are to meet on Monday to debate the proposed wage hikes.
Finance Minister Ivan Pilný from the ANO party maintains that there is no
money left in next year’s draft budget for wage hikes for public sector
The minister says that the proposed 15 percent wage hike for teachers and 10 percent increase for other public sector employees would require an additional 33 billion crowns and would increase next year’s budget deficit to close to 100 billion crowns.
The minister also dismissed the prime minister’s proposal that the money could come from the finances saved by individual ministries, saying the idea is unrealistic and the money is simply not there.
The coalition parties are to meet on Monday to debate the issue.
Labour market experts are expecting a further drop in unemployment, with
the figure likely to dip under 4 percent in September, the ctk news agency
The unemployment rate was 4.1 percent in July, and 4.0 in August. The lack of workers on the market is also expected to push up salaries.
The expectations are that unemployment will reach 3.7 percent in November before seeing a slight growth due to the end of seasonal work.
The Czech Confederation of Trade Unions has declared a strike alert in
support of teachers unions, who announced a similar move on Tuesday. The
president of the confederation, Josef Středula, informed journalists of
the decision on Wednesday.
The national union body is demanding a pay rise of 15 percent for educators and 10 percent for other public sector workers from November. The Social Democrats’ leader, Bohuslav Sobotka, has expressed support for such increases but Finance Minister Ivan Pilný of coalition partners ANO says the state lacks the funds to cover them.
Meanwhile, the Czech Conference of Rectors has announced a Week for Education at the start of October to highlight their demand for greater funding for universities in next year’s budget.