Confederation doesn't support minimum wage rise

The minimum wage should be enhanced in a way that is predictable for the Czech companies.

The Confederation of Industry of the Czech Republic doesn't consider the minimum wage rise by 700 CZK (26 euro) an optimal step. During the tripartite negotiations, the Confederation, as well as other entrepreneurs' associations, has been proposing the minimum wage rise by not more than five hundred CZK.

Several branches as textile and footwear industry as well as the security services businesses could experience an adverse impact of the latest Czech government's decision. The minimum wage rise will heap pressure on pay increase in the higher tariff classes in time when not all Czech companies are in a good condition. According to the latest Confederation's survey, about one quarter of these are in worse condition than one year ago.

The Confederation of Industry doesn't question the minimum wage's role and its contribution to the economic growth. Nevertheless, the minimum wage increase should not endanger the employment as well as the existence and competitiveness, especially as for the small and medium-sized companies.

„We are ready to discuss the minimum wage level," the Confederation's vice-president Jan Rafaj said. „But we are pointing out that there should be a coefficient for the minimum wage adjustment that will exclude once and for all this topic will be a theme of the pre-election campaign. We demand that the minimum wage rise be automatic in relation to the industry's condition. And it should be predictable for the Czech companies so that they could prepare for the change in time."