Czech Government blasted on flood package
by Ken Biggs When the Czech Republic's 41 Communist MPs opposed the Spidla Government's emergency post-flood package in the 200-seat Chamber of Deputies on September 12, they had the support of tens of thousands of rail and farm workers. Their unions belong to the country's second biggest trade union centre, the Association of Independent Trade Unions (AITU). AITU was formed a few years back after several unions accused the officially-recognised Bohemian and Moravian Confederation of Trade Unions (CMKOS) of betraying the interests of the Czech workers and broke away from it. Even CMKOS balked at accepting the Social Democrat-led "right-left" coalition's proposal not to increase sick pay in line with inflation, on the grounds that it needs the paltry sum saved to repair flood damage. The AITU sharply attacked another government proposal — to go back on its promise to increase the basic pay of 800,000 low-paid state employees by 13 percent. The employees include teachers and health workers. By reducing their rise to seven per cent the Government hopes to save 3.5 billion crowns (A $1.5 million), a tiny fraction of the cost of the flood damage — an estimated 100 billion crowns (A $43 billion). The Government also proposes to freeze already low pensions until January 1 of next year, while spending two billion crowns on hosting NATO's summit in Prague in November. During last June's election the Communists campaigned for an alternative economic strategy, saying this was essential if the country was to emerge from a period of protracted crisis and tackle an unemployment rate of nine per cent. Their vote rose by 223,000, while the Social Democrat vote fell by half a million. The Government's emergency package, said Exner, had less to do with the disastrous results of the floods and more to do with its other long-term aims, like standardising Czech VAT (the Czech version of Australia's GST) rates in line with EU demands. The government wants to increase VAT on food and services, including building work, from five per cent to seven per cent. The Communists accuse the government of trying to solve the problems caused by the floods at the expense of low-paid workers, pensioners, the sick and poor families. The Association of Independent Trade Unions is demanding that the Government honour its pledge to pay state employees a 13 percent increase, cut income tax for workers on low incomes, increase pensions in line with inflation and stop paying welfare benefits to entrepreneurs.* * * Postmark Prague (abridged)