Every job in the Czech Republic has its own lowest guaranteed wage. For example, garbage collectors providing garbage collection in the amount of 16,100 crowns, nurses who work in the hospital, 19,600 crowns and, for example, primary school teachers at least 24,000. But now the Minister of Finance is proposing to abolish it.
“Let’s just give up the guaranteed salary. Because take that we have eight segments of the economy where we dictate the minimum guaranteed wage. The problem of our economy is not the minimum wage, but the so-called guaranteed wage, “explains Deputy Prime Minister and Minister of Finance Alena Schillerová.
While for some professions the guaranteed wage can help to higher incomes, for example doctors or teachers have real salaries significantly higher than guaranteed by the state. For example, the average salary of a teacher today is over forty thousand gross, ie sixteen thousand more than the legal minimum. “It is a shame that it took time, if I count it – 32 years,” said Gabriela Kvasnicová from Mendel Elementary School in Prague in January.
On the contrary, according to Schillerová, the minimum wage of CZK 14,600, which is currently received only by the least qualified employees, could increase significantly next year. “If we involve the abolition of the guaranteed wage in this debate, then I think that we can certainly talk about a higher amount,” she said, adding that it is easy to negotiate the amount of sixteen thousand crowns.
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It was the increase in the minimum wage from 14,600 to 16,000 per month that the unions proposed for next year. However, the largest trade union headquarters strongly disagrees with the possible end of guaranteed wages, which also apply to waiters, bus drivers, doctors and dentists, as well as managers.
“It simply came to our notice then. This is completely against the sense that you are learning that you have a better job, and here the government would allow the employer to rob the employee, “says Josef Středula, chairman of the Czech-Moravian Confederation of Trade Unions.
“If we abolished the concept of a guaranteed wage, we would certainly be willing to discuss it, it might be to the benefit of the cause,” says Jan Rafaj, vice-president of the Confederation of Industry and Transport.
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The Communists are against it
The Communists, who tolerate Babiš’s cabinet, have strong reservations about the plan to abolish the guaranteed wage. “It would be a problem for us,” stressed the chairwoman of the parliamentary budget committee Miloslava Vostrá (KSČM), adding that if the minister really pushed for this step, the communists could stop tolerating the government.
Jana Government’s colleague Jana Maláčová (ČSSD) is skeptical about Alena Schiller’s plan. “I will hear all the arguments and then we will see,” said the Minister of Labor and Social Affairs and the party’s deputy chairwoman.
Ministers will discuss the plan to abolish the guaranteed wage and increase the minimum wage with representatives of trade unions and companies at a tripartite meeting on 21 September.
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