Final Word from Tuesday, April 24, 2007
Last week's hot economic topic was the new power of the labor unions. This week, it's already been forgotten. Despite what the headlines suggested, unions in the CR remain quite weak. They achieved a partial success at Škoda Auto, but that's an exception. Since then, workers at ETA appliance maker lowered their demands for an 8% wage hike to a reasonable 4.9%, and labor leader Milan Štěch was unable even to make the front page of left-leaning Právo with his objections to the government's tax and social changes. Employers like weak unions, but where they could use some newfound toughness on the part of workers is in pressing the government to lower the punitive 47.5% social and health surcharge on labor. A reduction here would be a win-win situation for employers and workers. But without the organized Left joining this cause, no significant progress can be expected.[Czech Republic ČMKOS Eta unionized social-security healthcare]