Trade unions are demanding an 11% wage increase in the construction industry.

Prague - Construction unions are demanding an 11 percent increase in wages in the construction industry for 2009. The Association of Entrepreneurs in Construction (SPS) proposes freezing the wages of employees in construction companies until mid-next year, said Stanislav Antoniv, chairman of the Construction Trade Union, to ČTK today. The negotiating teams from both sides are set to meet for the first time on Monday, December 8, just a day after the heads of both associations are scheduled to meet directly, said SPS President Václav Matyáš.
    "For me as the head of the unions, this is absolutely unacceptable," Antoniv commented on the alleged proposal from employers to freeze wages. The president of the employers' association did not want to comment on the union's offer for now. "However, it certainly won't be easy this time in light of economic problems," Matyáš told ČTK.
    This year, unions are entering negotiations with a higher demand than last year. At the end of 2007, they requested a 7.5 percent wage increase from employers. The collective agreement reached for this year ultimately guaranteed construction employees a wage increase of at least 6.2 percent. Negotiations between the unions and the construction association at that time were not resolved even after five meetings of the negotiating teams. Ultimately, Antoniv had to agree on the wage increase directly with Matyáš at a special meeting in January.
    The agreed wage increase in the construction sector for 2008 thus roughly covers inflation for now. Year-on-year growth in consumer prices slowed to six percent in October, down from 6.6 percent in September. According to the Czech National Bank, the rate of price growth is expected to slow to 2.3 percent in the third quarter of 2009.
    Antoniv admitted that due to the anticipated slowdown in the industry's growth, some construction workers would have to lose their jobs. "In some companies in the field of construction material production, this is already happening," remarked the union leader. However, he stated that layoffs should only concern agency workers. "Core employees should not be affected," Antoniv noted.
    According to the latest data from the Czech Statistical Office, the number of employees in construction companies with 20 or more employees fell by 0.2 percent year-on-year in September. The average nominal monthly wage increased by 10.8 percent to 24,073 crowns. Real wages grew by 3.9 percent year-on-year. The average hourly wage was 153 crowns, down one percent compared to the same period last year. Labor productivity per employee increased by 8.9 percent.