CMNT_TITLE

Employment Policy Convention, 1964 (No. 122) - Czechia (RATIFICATION: 1993)

Articles 1, 2 and 3 of the Convention. Employment policy measures. Consultations with social partners. The Committee notes the Government’s detailed reports received in October 2010 and 2011, including comments from the Czech-Moravian Confederation of Trade Unions (CMKOS) and the Confederation of Industry and Transport (CIT). The Government summarizes the discussion that took place on 18 October 2010 at the Council of Economic and Social Agreement of the Czech Republic (CESA CR). CMKOS and CIT both claimed that social partners jointly proposed the possibility to introduce measures that had been adopted in other European Union countries and had a positive impact on keeping jobs, production and overall employment. The social partners noted that unfortunately, these proposals were not further developed by the Government. CMKOS indicated, in its 2010 comments, that measures which promote greater labour market flexibility and reduce labour costs for entrepreneurs are one of the factors which contributed to the development of the crisis, worsened conditions of employees and did not necessarily bring the expected benefits in terms of raising entrepreneurial activity and a greater willingness of entrepreneurs to create more jobs. CMKOS believes that in evaluating the implementation of the Convention, the decisive factor should ultimately be the situation in the labour market and not formal reporting of government measures. The Government recalled in its 2010 report several employment policy measures taken during the economic crisis, mainly the vocational training and retraining programmes for workers, financed by the European Social Fund. The Committee notes the Government’s expectations in the sense that the social partners will take an active role in the future when it will bring forward further reforms regarding the competitiveness of the Czech economy and its labour market. CMKOS indicated, in its 2011 comments, that it is dissatisfied with the application of Article 3 of the Convention because no consideration is afforded to the positions and opinions of social partners and trade unions, in particular, when adopting new labour legislation. CMKOS is also concerned with the Government’s budgetary cuts in the implementation of an active labour market policy. In response, the Government reports that tripartite consultations have been regularly held and the mere fact of not reaching an agreement favourable to all does not constitute a violation of the Convention. The Committee invites the Government to provide information in its next report on the impact and results achieved in terms of productive jobs creation by new labour market regulations. It also invites the Government to include information on the involvement of the social partners, in accordance with Article 3 of the Convention, which requires that their views and experiences are fully taken into account when designing and implementing an active employment policy.

Employment trends and active labour market policies. The Government recalls that its economic situation during the 2008–10 period was strongly affected by the global financial and economic crisis, and reports that, starting in the mid fourth quarter of 2008, there were repeated monthly declines in industrial production amounting to nearly 10 per cent, whereas in January of 2009, the industrial production was down by 23.3 per cent as compared to 2008. However, the economy did show some signs of revitalization in 2010 as industrial production increased by 10.3 per cent and continued to rise through the first quarter of 2011, during which production increased by 12.7 per cent. Furthermore, the foreign trade turnover recorded the highest ever decline in the history of the Czech Republic in the first half of 2009, a decline calculated at 20.3 per cent when compared with the first half of 2008. The Government indicates that the implications of the recession were immediately apparent in the labour market through the gradual increase in unemployment and the reduction in the number of vacancies. Starting in December 2008, the reported instances of mass lay-offs started to increase with the highest number of reported instances recorded in January 2009. In June 2009, the registered unemployment rate reached 8 per cent and, in 2010, it further increased to 9 per cent and attained an estimated rate of 9.6 per cent in the first quarter of 2011. The Committee notes that, from January to June 2009, the total number of foreign workers decreased by more than 11 per cent, from approximately 285,000 to less than 252,000. The Government indicates that in 2008 the Ministry of Labour and Social Affairs granted investment incentives to 45 investors who subsequently undertook to create 5,563 new jobs and train or retrain up to 6,132 new employees. In terms of regional distribution of this support, the most financial funds went to Ústí nad Labem Region (64.1 per cent), followed by the Moravian-Silesian Region (13.0 per cent). The Committee notes that the Government grants financial support in order to create new jobs in regions most affected by unemployment. Funds were attributed to investors who undertook to support and create employment, and to provide training and retraining. The Committee invites the Government to continue to provide in its next report data concerning the size and distribution of the labour force, the nature and extent of unemployment and underemployment and trends therein, as a basis for deciding on employment policy measures, especially in regions most affected by unemployment.

Education and training policies. The Government recalls that, in December 2008, the action plan for the support of specialized education was adopted which focuses on the support of cooperation with employers, and accentuates certain measures such as the transition and success of graduates of specialized schools in practice. The Government further states that the national individual project involves practical training for young people up to 29 years of age registered by labour offices for at least five months, for the purpose of acquiring, improving and refreshing specialized skills. It further indicates that the practical training should comprise counselling activities as well as the hands-on training itself for the period of 6–12 months, during which time the labour office provides salary grants to the employer. In 2011, the Ministry of Industry and Trade prepared the International Competiveness Strategy for Czech Republic 2012–20 (ICS). The ICS aims at increasing the employment of certain population groups, such as older workers, women, people with low qualifications and young people. As part of the ICS, the Changes in the Content of Education programme was implemented to change the educational system in order to help young persons acquire a wider range of skills and to motivate them to take part in lifelong learning. The Committee invites the Government to continue to provide information regarding policies and programmes for lasting employment opportunities for young people and older workers. The Committee invites the Government to provide further information on the ICS and its impact in overcoming the difficulties in finding lasting employment for workers affected by the crisis.

Business development. The Government indicates that the Operational Programme Enterprise and Innovation (OPEI) for the period of 2007–13 is intended to support business activities, namely in the area of small and medium-sized enterprises (SMEs), and to increase the competitiveness of enterprises. The OPEI grants support for the development of business activities and monitors the impacts of the measures on the creation of jobs via a newly created jobs indicator. The Government indicates further measures to create a favourable business environment necessary for the development of business thinking and to promote competitiveness of SMEs. These measures include the simplification of tax legislation and less administration as factors affecting the creation of a more favourable business environment. The Committee invites the Government to continue to include information in its next report on the effects of these measures on employment creation and its impact to improve the success of young entrepreneurs. Please also indicate how the social partners were involved in informing SMEs of key labour market concerns and opportunities.