Union: Construction companies cannot count on foreign workers

Prague - Due to the current measures against the spread of the coronavirus, construction companies may face problems as they cannot rely on foreign workers. Jiří Nouza, president of the Czech Chamber of Commerce in Construction, informed ČTK today. The extraordinary government measures are respected by the chamber. Companies that have contracts abroad are also experiencing difficulties. This particularly concerns Metrostav, which has generated approximately 30 percent of its revenues in foreign markets in recent years.

"We respect the extraordinary government measures. The key now is to do everything to handle the epidemic. The current situation naturally affects everyone, including construction companies. We are at the beginning of the construction season, and the measures regarding travel from abroad to the Czech Republic mean that construction companies cannot currently count on foreign workers," said Nouza.

According to him, the chamber is intensively negotiating with state authorities to minimize the impact on construction companies and their employees. "We are currently conducting a quick survey among member companies to monitor the situation, how they are affected, and what burdens them the most," Nouza added.

According to Metrostav's spokesperson, Vojtěch Kostiha, last year's leading construction market firm in the Czech Republic, the biggest current problem for the company is the presence of workers on foreign construction sites. "We are currently assessing the situation in various countries and locations and preparing plans for potential demobilization and conservation of our foreign construction sites. Under normal circumstances, our employees travel frequently between the Czech Republic and abroad, which is now problematic," Kostiha told ČTK.

He further stated that problems could also arise with the delivery of some materials, as the company imports many components from abroad. "A major problem can also be the personnel provision of construction sites, given that subcontractors often rely on foreign workers for labor-intensive positions," Kostiha added.

As of today, the government has banned Czech citizens from traveling anywhere abroad, as well as the entry of foreigners into the Czech Republic. The sale of accommodation services is prohibited, dining establishments are closed, and, with some exceptions, most stores also remain shut. Free movement of residents is also limited to essential activities.

According to a survey by CEEC Research from last October, two-thirds of construction companies in the Czech Republic employed foreign workers. Among these companies, foreign workers made up an average of 16 percent of the workforce. The majority of them were from Eastern Europe and Asia, specifically from Turkey. In contrast, the share of Ukrainians was declining. Foreign workers were employed more by large companies with a minimum annual turnover of 200 million crowns. In this category, about four-fifths of the companies did so. About half of small and medium-sized enterprises utilized this opportunity.