New conception of short-time work is not motivating

The Confederation of Industry of the Czech Republic doesn’t consider the decision of the government of the prime minister Bohuslav Sobotka to let the employers pay the short-time work costs as 70 percent of the average monthly pay sufficiently motivating if the state will cover 20 percent of this sum only.

The wage compensation for the part-time employment amounts to 60 percent of the monthly pay now, whereas, according to the governmental proposal, the companies would pay 50 percent of the monthly pay.

The short-time work with a state contribution could be exploited by the companies that would have to shorten the work time, due to the economic crisis or natural catastrophe, by 20 to 40 percent.

One of the proposals suggested that the state contribution would make up 20 percent and the employer’s one 60 percent of the average pay. The other one has taken into account a 20-percent-of-the-average-pay state contribution and a 40-percent-of-the-average-pay contribution by the employers. Trade union demanded 90 percent of the average pay – 45 percent paid by the state and 45 percent paid by the government.

For several years now, the Czech companies can introduce a short-time work if they consider it necessary but they don’t receive any state contribution. Under the governmental proposal, the Czech companies would receive the state contribution for a six months‘ time, and repeatedly for another six months‘ time. The maximum amount of it would make up 10 to 15 percent of the Czech average pay, so 2481 CZK (90 euros) or 3721 CZK (135 euros) per month.