New kurzarbeit proposal is not good

A new draft of kurzarbeit (short-time work) rules is not a success, Prime Minister Andrej Babis said at an online assembly of the Confederation of Industry, adding that nobody is satisfied with the proposal.

That is why he is expecting a long debate on kurzarbeit in the Chamber of Deputies, Babis said. A parliamentary session on the employment draft will begin on Wednesday at 10:00. Even Agriculture Minister Miroslav Toman protested loudly against the draft as his ministry lacks about 15,000 employees, Babis said. "The most important thing we are faced with is making a decision on extending Antivir (employment protection programme) and obviously introducing kurzarbeit," Babis said.

Jaroslav Hanak, president of the Confederation of Industry, asked Babis to launch a social dialogue in the tripartite council (government, employers, trade unions). He criticised the kurzarbeit proposal. According to him, the situation on the labour market that is short of qualified labour is the biggest economic problem. Firms say they need foreign workers, Hanak said.

Economic development is hindered by a construction law that is one of the worst in the world and the state of digitisation, Hanak said. The Confederation sees investment and education promotion and digitisation as the government's primary tasks, Hanak said. "Education is not in a good state. Primary and secondary education needs to be reformed," he added.

Trade unions back the proposal to convene a tripartite meeting, CMKOS trade union confederation leader Josef Stredula told CTK. There is a number of topics that need to be discussed, for instance, a state budget draft, use of EU funds in the next programming period and measures against the spread of coronavirus. Jan Rafaj, vice-president of the Confederation of Industry, said he believes the parliamentary debate will change the kurzarbeit rules so that they prevent any disqualification of skilled labour.

Under the kurzarbeit rules, employees might stay at home up to four days a week. They would get 70 percent of net income for unworked hours, the maximum being an amount equal to the national average wage. Subsidies might be paid for one year at most. Firms would pay social contributions for unworked hours using state aid.

The Chamber of Deputies, the lower house of parliament, did not back debating of the government draft in the state of legislative emergency. Trade unions and employers said earlier they were not satisfied with the parameters of the scheme and that they would try to push through some changes to kurzarbeit during the parliamentary debate.

The cabinet is seeking extension of COVID relief programmes so that CMZRB bank might provide guarantees for loans within the programmes until next year, Industry and Trade Minister Karel Havlicek said at the assembly of the Confederation of Industry. The current deadline is the end of this year in line with the EC's state aid temporary framework. The Commission is considering its postponement until June 30 and Czechia is proposing the end of the year, and the date is still in play, Havlicek said.

You can see the full online Assembly of the Confederation of Industry here.

Source: ČTK