TK of the Czech-Moravian Confederation of Trade Unions (ČMKOS) on the topic Weaknesses of the planned pension reform, February 17, 2023, Prague. From left, ČMKOS chairman Josef Středula and ČMKOS vice-chairman Vít Samek.
Prague – The leadership of the Czech-Moravian Confederation of Trade Unions (ČMKOS) sharply criticizes the government for not negotiating with them on pension reform. He calls it a disruption of social dialogue. The largest trade union headquarters is writing to Prime Minister Peter Fial (ODS) about this. He is asking to discuss the proposals for changing the pension system at the March tripartite meeting. ČMKOS leader Josef Středula told journalists. According to him, trade unionists from the strongest KOVO union are debating the form of protest actions. The unions criticize, among other things, the plan to gradually increase the retirement age up to 68 years. ČMKOS also opposes the proposed restriction of the extraordinary valorization of pensions in June. Leaders talk about a violation of constitutionality, due to possible retroactivity, the principle of expectation or equal treatment.
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“Between May and today, there was no debate on the form of the pension reform. This is a disruption of social dialogue in all respects,” said Středula. The unions complain that the government does not even provide them with documents, or does not send them on time. “Yesterday before noon (Thursday) we received a draft amendment to the act on valorization, we are supposed to submit comments by today, the government will discuss it on Monday. This is not social dialogue, it is not even a game for dialogue, it is ignoring social dialogue,” Středula said.
The tripartite is scheduled to meet on March 6. The trade union headquarters requests that representatives of the government, trade unions and employers discuss the upcoming reform at the meeting. The head of the ČMKOS is writing to the Prime Minister about this. The trade unions wanted to be represented in the retirement team of the Minister of Labor, but they are not participating in the meeting.
Unions oppose the plan to raise the retirement age. They are calling for earlier retirement for people in demanding occupations. They want this group to be wider. They also criticize the possible reduction of levies. They refuse to limit the extraordinary valorization in June. According to the vice-chairman of ČMKOS Vít Samek, the proposal violates constitutionality, due to retroactivity, the principle of expectation and equal treatment. “As of today, it is known what the valuation of pensions should be. The Czech government is only to issue a technical regulation. The legitimate expectations of every pensioner are based on knowledge of the current legislation,” said Samek.
According to Středula, the KOVO trade union started discuss the form of protest actions. Trade unionists are mainly bothered by the intended increase in the retirement age. “ČMKOS will unequivocally support the actions of the KOVO union and possibly invite other unions to follow,” said Středula.
ČMKOS is the largest trade union headquarters in the country. It brings together 31 trade unions with approximately 270,000 members.
Jurečka lacks a solution to the sustainability of the pension system from the trade unions
Minister of Labor and Social Affairs Marian Jurečka (KDU-ČSL) lacks proposals for a solution to the sustainability of the pension system from the trade unions that oppose the planned changes in pensions. He told journalists today that he knows the opinion of the unions and communicates with them on a professional basis. He has not arranged a meeting with the trade unions, he expects to meet with them at the latest at the meeting of representatives of the government, employers and trade unions in mid-March.
“I have to ask what the union's solutions are, so that there is a sustainable pension system here, so that we are able to ensure people's quality of life even after 2030, 2040 and the like. And so far, I have a really objective answer to that, which is able to reflect the whole situation, didn't hear,” said Jurečka. According to him, it is necessary to perceive the context – the state budget, its possibilities, the rate of borrowing. Therefore, the government plans to increase pensions in June by less than the law stipulates. According to him, the state must also have money to help other parts of society, people whose financial situation worsened significantly last year, in contrast to people who receive pensions valued last year fully at the level of inflation.
The five-member cabinet promises to carry out the reform in its program statement. Prime Minister Petr Fiala (ODS) has repeated several times in recent days that reforming the pension system is necessary to make it sustainable for future generations of pensioners. He pointed out that the previous governments should have made the changes. According to economists and some politicians, it is not possible to maintain pensions in their current form in the long term, the system is falling into debt. According to the approved budget, pension expenditures are 62.5 billion crowns higher than income this year. The amount does not include the extraordinary June valorization that is still being prepared.
Ministers are still mentioning the abolition of the ceiling on the retirement age. It now moves forward by a few months every year, and should stop at 65 in the next decade. Government politicians are talking about the fact that the gradual increase should continue until the age of 68, according to the extension of life. According to representatives of the government coalition, old age savings should also be adjusted so that people draw it every month as part of their pension. There is also mention of bringing self-employed people's levies closer to employee levies, shortening the mandatory insurance period from 35 to 25 years, or an earlier pension for demanding professions. In the program statement, the government writes about an increase in the solidarity part of the pension or a reduction in contributions to employers. Ministers have already stated that due to indebtedness, a decrease in the insurance premium rate will not be possible.
