Employers want more money for research, universities

Representatives of Czech employers demanded more money for research, transport infrastructure and universities during the tripartite talks between the government, the trade unions and employers today. The businesspeople said the budget bill, drafted by the Finance Ministry and now discussed by the government, was politically motivated and unsystematic. The trade unions are not satisfied with the budget bill not planning to raise the subsistence level and they demand a higher pay rise.

"The planned budget deficit of 50 billion crowns is still valid," Prime Minister Bohuslav Sobotka (Social Democrats, CSSD) said. "We are still looking for financial sources to increase the sum on transport infrastructure, universities and research and science," Sobotka said.

Jaroslav Hanak, president of the Confederation of Industry, said the state infrastructure fund needed 8.5 billion crowns more and the Technological Agency 665 million for applied research next year. Hanak said the businesspeople also resented the growing mandatory and non-investment expenditures which might cause problems to the Czech Republic in the future, if there were an economic downturn. "At the time of an economic growth, the deficit of 50 billion crowns is inordinately big," Hanak said. He said the employers would only agree with such a deficit if the money were spent on research, construction and teachers.

The trade unions insist on the 15 percent increase in salaries for teachers and 10 percent increase for the rest of the civil service as of November.

Finance Minister Ivan Pilny (ANO) said the "budget did not include many investments." The Finance Ministry raised the estimated economic growth in 2018 from 2.9 to 3.1 percent, as well as the estimated tax revenues. Individual ministries are to release one quarter from their reserves, which is to make up the total of ten billion crowns.

The trade unions want to rise the subsistence level. It has not changed for several years and now it is 3410 crowns a month for a lone adult person. "We are dissatisfied with the subsistence level not developing," Josef Stredula, leader of the CMKOS umbrella trade union, said. "Since the time it was raised last time, it has lost some 8-9 percent of its value," Stredula said.

However, the three negotiating parties praised their dialogue in the past government term of office.

Sobotka said the cooperation was "very intensive, open and honest" and the talks were held once in two months."We preserved social peace for the whole period of four years," Sobotka said.

Source: ČTK