Negotiations are coming to an end and companies are facing “we want to add” pressure – News List

With the end of the year approaching and preparing their new salary budgets, companies are preparing for salary increases. The companies, which are among the largest employers in the Czech Republic, are now negotiating with the trade unions to increase the wages of their workers.

“Currently, several employers are involved in collective bargaining, which also includes a discussion about salary increases. We believe that it will be possible to negotiate a good wage increase for the workers,” said Jiří Vaňásek, vice-chairman of the Confederation of Czech-Moravian Trade Unions (ČMKOS).

In the industrial sector, the unions are fighting for a wage increase of at least eight to ten percent.

Very large companies, such as ČEZ, Škoda Auto or Česká spořitelna, but only because discussions are ongoing, do not want to comment on specific plans yet. Any word leaked to the public could jeopardize their position and tactics.

“Regarding the course of the coalition with the unions, we cannot now predict its results in terms of the level of wages and benefits in 2025,” Česká spořitelna spokesman Filip Hrubý said, adding that the bank will take inflation into account when increasing the wages of its employees.

The companies’ negotiations should be completed by the end of the year, according to the spokesperson.

However, according to the statement of ČMKOS vice-chairman Jiří Vaňásk, wage growth across sectors should be higher than the current inflation rate. “The wage increase should at least match the drop in real wages caused by inflation in recent years. The real wages of workers today are in line with the level of 2018 to 2019,” he said. In September, Czech inflation reached 3.5 percent.

However, employers must also respond to the situation on the domestic labor market – unemployment is low and companies are always scrambling not only for qualified people. If they were to “press” and not come to some kind of compromise, they could lose their employees.

In August, 286,320 people were unemployed, which means an unemployment rate of 3.8 percent. Employers then offered 263,247 vacancies. In many cases, the level of inflation is the limit of negotiation during the negotiations.

In addition to negotiations with the unions, the plastic parts manufacturer Isolit-Bravo is also preparing to increase workers’ wages.

Also there, according to its owner Kvid Štěpánek, the salary of employees next year will increase at least the rate of inflation.

“We expect the most significant growth in skilled professions such as machine makers, technicians, designers or developers. Due to the growing Chinese competition, they are the only hope, not only for our company, but for the whole of Europe,” said Kvido Štěpánek.

The company O2 also plans to increase wages. “If we see that there is a place somewhere and a reason to increase, we will come to it. The same thing happened this year, when we increased money for wages, and it will be the same next year as well,” said media spokesperson Veronika Zachariašová.

The company is also going to solve the issue of the employees’ income by expanding the range of benefits it provides.

“These include, for example, unlimited mobile tariffs, internet connection and O2 TV for employees and their families at a discounted price. Every three years, employees also receive a telephone allowance of up to 18,000 crowns,” said the company’s spokesperson.

The gradual pace of wage increases in the private sector is also measured by a June report from the Comp&Ben Association, which deals with the analysis of wages and payment systems. However, the growth rate will continue until 2022 and 2023.

“For the second half of 2024 and especially the first quarter of 2025, we expect that there will be a slight reduction in wage increases again. In addition, it is possible to expect that some businesses will receive below five percent next year,” said Tomáš Jurčík, director of the Comp&Ben Association.

This year, the average increase in basic salary was higher, at 5.7 percent.

In some branches, especially production and technology, the increase can still exceed the five percent limit. The reason is simply the lack of qualified people in production.

“But many employers will not be able to contribute more because of the slowdown in some sectors of the economy, the sharp rise in wages in recent years and the end of the post-inflationary wave that has often be an argument for a wage increase. . Nevertheless, high qualifications and in short supply positions in technology fields can maintain a stronger bargaining position even in 2025,” said Tomáš Jurčík.

Even this year, salaries in manufacturing and IT companies grew at the fastest rate. For example, in the automotive sector, according to the study of the Comp&Ben Association, the median value was at the level of six percent.