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Contents The results of the Working Conditions Survey:

The results of the Working Conditions Survey

1. Introduction

Survey "Information on working conditions" (IPP) annually monitors the working and wage conditions for employers in the Czech Republic based on an analysis of collective agreements. Under the auspices of the Ministry of Labour and Social Affairs (MoLSA), this survey has been conducted regularly since 1993. Its purpose is to map and analyse the content of collective bargaining in the Czech Republic. The aim of the survey is to provide the state and other institutions (CNB, Research Institute for Labour and Social Affairs (RILSA), etc.) an overview of trends of collective bargaining and to provide contractual partners adequate information for further negotiations on an enterprise level or for negotiations in respect of a higher level collective agreement.

The Commission composed of the representatives of the Ministry of Labour and Social Affairs, the Czech Statistical Office, the Ministry of Finance, the Czech National Bank, the Czech-Moravian Confederation of Trade Unions, the Confederation of Industry of the Czech Republic, CERGE-EI, the University of Economics in Prague and other institutions comments on the course of the investigation and the outputs. IPP is carried out by TREXIMA, Ltd.

The survey focuses on agreements of social partners in the areas of:

  • cooperation of contracting parties
  • remuneration of employees
  • length of working hours, forms of work, increase of holiday, changes in employment
  • employment rate and employees' professional development
  • working conditions and benefits
  • employees' professional development, fair treatment, industrial safety and health protection at work

The IPP survey monitors enterprise collective agreements and higher level collective agreements. The most important criterion for classification of results is whether the investigated economic entity belongs to a business or non-business sector. The business sector includes economic entities which remunerate with a wage pursuant to Sec. 109 (2) of Act No. 262/2006, the Labour Code; the non-business sector includes entities which remunerate with a salary pursuant to Sec. 109 (3) of the Labour Code, as amended. Input data are entered electronically by means of the acquisition programme “EKS”, or by direct collection of collective agreements.

In 2017 selected data about wage and working conditions were analysed from 1,737 collective agreements from 27 different trade unions (TU), which represented almost 899 thousand employees. In 2017, 19 higher level collective agreements were also analysed and evaluated.

2. Aim of Collective Bargaining

The aim of collective bargaining is to agree on the working conditions of employees (including remuneration) and to regulate the relationships between an employer and the trade union organization (employees' representative) operating in the enterprise (e.g. the scope of provided information, the form of discussions on important issues, etc.) with the aim of ensuring enterprise, branch and nationwide industrial harmony. In order to achieve these objectives, the state (that sets minimum standards) and both contracting parties need a comprehensive and quality information base, which will enable to make comparisons both with other enterprises and economic possibilities of the employer. The function of a collective bargaining agreement (CA) is to create conditions which will help the company or institution secure stability and enable it to concentrate on its strategic objectives. In regard to employees, the CA guarantees them fair wage and good working conditions.

An important part of collective bargaining includes higher level collective bargaining agreements and the extension of their binding effect on employers in the relevant line of business. The main purpose of this institute is to prevent any undesirable competitive advantages among comparable employers due to substantially lower labour costs that would be to the detriment of employees. At the same time the extension of the binding effect of higher level collective agreements is recognized as a provision of the state to support collective bargaining according to the Conventions and recommendations of the International Labour Organization.

3. The survey results for the period 2017 based on a sample of 1,318 Enterprise Collective Agreements in the Business Sector

Remuneration – minimum monthly wage rates

The monthly wage rates were agreed on in more than 49% of Enterprise Collective Agreements (ECA) this year. As some employers agree on ranging from-to wage rates in their ECA, the Working Conditions Survey (IPP) monitors only the lowest level of the relevant tariff scale.

The survey results of enterprise collective agreements showed considerably different level of the minimum monthly wage rates in individual Trade Unions this year. While the wage level of employers who are part of Trade Union (TU) for Glass, Ceramic & Porcelain reaches only 23,499 CZK per month at the 12th tariff scale, employers of the Trade Union for Mines, Geology and Oil Industry pay 54% higher (36,292 CZK per month) wages at the same tariff.

Further the analysis showed that the dynamics of monthly wage rates negotiated for the 12-scale tariff system has changed in comparison with 2016. While dynamics of development ranged from 2.7% to 5.8% in 2016, dynamics accelerated significantly in 2017, reaching levels from 5.6% and 8.4%. This year, dynamics keeps growing tendency in all tariff scales, the highest increase in wage tariffs was recorded for employees with the lowest earnings.

Wage development

Almost 66% of the analysed enterprise collective agreements regulate the field of wage development, of this 0.7% of the ECA in the form of maintaining the level of the average wage. This year, a growth of any of the wage forms is included in 68% of the ECA, which means an increase in ECA by 3.1% compared to 2016. The increase wage is not expressed by one figure in enterprise collective agreements, but is represented by several different forms - by increasing the average nominal wage (26.4% ECA), by increasing wage scales (34.3% ECA), by maintaining real wage (11.8% ECA), by increasing total volume of wage funds (8.6% ECA), or by increasing the average real wage (1.7% ECA). An analysis of the data showed that in 2017 an increase of 3.5% was agreed to in enterprise collective agreements regulating wage increases by increasing the average nominal wage. In ECA in which social partners regulate wage trends by increasing wage scales, the average agreed increase amounts to 4.3%. Hence this year, the growth of the agreed average nominal wage remained approximately on the same level as in 2016, while the wage tariffs grew by almost 1%. As concerns agreements in which the wage development is agreed in the form of an increase of the average real wage, the average agreed increase amounts to 1.7%.

Level of most frequently used premiums

The premiums are an integral and important part of enterprise collective agreements. The survey information on working conditions focuses especially on premiums, which appear most frequently in enterprise collective agreements. Such premiums include namely premiums for overtime work, night work, work on Saturdays and Sundays, work on public holidays and work in difficult conditions. Regarding the number of ECA and an average agreed amount of extra pay, these levels remain on the same level as in 2016.

More than 84% of enterprise collective agreements include the amount of premium for overtime work. This year a premium for overtime work was agreed to on working days at 41% ECA, for overtime work on public holidays (Saturdays and Sundays) at 30% ECA and for unspecified overtime work at 42.9% ECA. In the business sector, the average level of the agreed premium for overtime work on working days amounted to 26.2% of average wages and premium for overtime work on Saturdays and Sundays 47.8% of average wages.

An arrangement on wage supplement for night work is included in 82.2% of enterprise collective agreements and its minimum amount is at least 10% of the average earning pursuant to Section 116 of Act No. 262/2006 Coll.

The analysis evaluated the average value of the premiums in enterprises at the level of 11.3% of average earnings with 45.6% of ECA. This premium can be agreed, in accordance with the option stipulated in Sec. 116 of the Labour Code, in a different way, for example in hourly rates (46.7% ECA), when the average value of the premium amounts to 15 CZK per hour.

The premium pay for work on Saturdays and Sundays was agreed to in 78.7% of enterprise collective agreements. The average premium pay reached to 23.6% of average wages this year (71.1% ECA), which means that its value is the same as in 2016. If we compare the agreed values of this premium in individual trade unions, its level is the highest in the TU for banking and insurance with an average value amounting to 36.7% of average wages. On the contrary, the lowest level of this premium in the amount of 10% of average wages is shown with the TU for catering, hotels and tourism and the TU for postal, telecommunication and newspaper services.

Almost 76% of enterprise collective agreements include an agreement for contracting parties on the premium for work on public holidays, where the average amount of this premium amounts to 101.8% of average wages.

59% of enterprise collective agreements include an agreement on the provision of the premium for work in difficult conditions. The analysis recorded that this year maintain the average value of this premium at approximately the same level as in 2016. In 2017 this premium amounts to 7.9 CZK per hour (agreed in 45.1% ECA), 10.5% of the basic rate of minimum wages (agreed in 12% ECA) or 10.5% of average wages (agreed in 3.4% ECA).

Benefits and working conditions

Canteen meals
The most frequent benefit provided to employees in enterprise collective agreements this year is the employer's contribution to canteen meals. The entitlement to this contribution was agreed in 96.1% of enterprise collective agreements in 2017.

Of this number, more than half of all employers make a contribution towards canteen meals from expenses in crowns or as a percentage of the meal price. The average amount of the contribution determined as a percentage of the meal price equals 54.6% and approximates the maximum amount specified in Sec. 24 (2)(j)(4) of Act No. 586/1992 Coll., the Income Taxes Act, as amended, for recording these contributions in expenses. The amount of the price paid from the employer's expenses then amounts to 39.3 CZK in 2017. In 15.2% of the ECA, employers contribute to their employees for canteen meals also from a social fund or another fund created from profit. The average contribution agreed to here amounts to 14 CZK per meal or 19.2% of the price of the meal. There is a sample of more than 25% ECA in the survey that contain an agreement on the provision of the canteen catering allowance; however, they do not stipulate the actual amount of such allowance.

This year, the employer's contribution for canteen meals was agreed also for former employees (more than 15% of the ECA), employees during a period of leave (almost 3% ECA) and employees during the period of temporary inability to work (more than 2% ECA).

Employer’s pension plan
Arrangements for the provision of employer contributions towards a pension plan have become another important part of enterprise collective agreements. This year, 62.3% of enterprise collective agreements contained this arrangement, when the average monthly employer contribution increased by 43 CZK compared to 2016 and amounts to 645 CZK. This year the minimum amount of allowance amounts to 492 CZK, and the maximum amount of the granted allowance amounts to 791 CZK. The data analysis showed significant differences in the amount of the contribution of employers covered by individual trade unions. While the maximum average value of the contribution of the employers covered by TU for Commerce amounts to 390 CZK/month, this contribution is almost 3 times higher for the employers covered by Trade Union of Aviation and amounts to 1,167 CZK/month. The survey has shown that compared to 2016, this year has recorded a slight growth, by 2.3% in the number of enterprise collective agreements in which the payment of this contribution is conditioned by fulfilment of specific conditions (agreed in 49.2% ECA). This year’s survey disclosed a certain number of agreements (13.1% of enterprise collective agreements) in which this contribution is determined as a percentage of an employee’s monthly assessment base and averages 2.9%.

Life insurance
Life insurance contribution is agreed in 23.6% of enterprise collective agreements this year, which is the same number of enterprise collective agreements as in 2016. The average amount of this monthly contribution provided by the employer increased compared to 2016 by 30 CZK and amounts to 611 CZK per month. The minimum allowance amount granted this year is 478 CZK, and the maximum amount of such allowance amounts to 734 CZK.

Social fund
To ensure certain social needs of employees, employers can create a social fund or they can use other social programmes (without differentiation of financial resources). The survey implies that 34.3% of organizations determine in their corporate collective agreements the creation of social funds and 16.5% of organizations create other social programmes. The data analysis has shown that the creation of the social fund is in this year mostly subject to the volume of wages paid, when its average level is 1.9%, like other social programmes. Should the organizations use the appropriations to the social fund in the form of an absolute sum per one employee from profit, such sum amounts to 1,823 CZK or 6,932 CZK for other social programmes. In 10.6% of all corporate collective agreements employers can draw the funds in the form of drawing accounts.

Working time and holidays

Working time
92.7% of enterprise collective agreements contain an agreement on working time, of which 63.3% specify uniform working time for the whole organization and 29.4% contain an agreement on different working times according to different systems of shift work.

Analysis of data has shown that in 77.9% of enterprise collective agreements, which stipulate uniform working time for the whole organization, the weekly working hours of 37.5 hours/week have been agreed to, while working hours of 40 hours/week have been agreed to in only 21.1% of enterprise collective agreements.

Regarding work in a shift system, the weekly hours have been agreed to as follows: 1-shift system of work - most often the working hours have been agreed to at 40 hours/week (84.8% ECA), 2-shift system of work – 38.75 hours/week (70.6% ECA), 3-shift system of work – 37.5 hours/week (95% ECA) and in continuous system of work – 37.5 hours/week (88.2% ECA).

Leave
The Working conditions survey also monitors the range of the holiday leave of employees, providing above the limit specified by the Labour Code, according to which the basic claim for the holiday leave amounts at least to 4 weeks per calendar year. The extended holiday leave was provided in 87.6% of enterprise collective agreements this year. An extension of the holiday leave by one week is arranged in 78% of enterprise collective agreements and 1.8% of enterprise collective agreements extend the holiday leave by two weeks. The survey has shown that only 7.7% of enterprise collective agreements contain an agreement on an increase of leave entitlement in days. The average number of days by which leave was increased amounts to 4 days.

Author: Odbor 52
Updated: 19.2.2018

Nastavení zobrazení:

Shown / printed from website of Ministry of Labour and Social Affairs of the Czech Republic (http://www.mpsv.cz) on 19.11. 2018 000 12:31.