Observation (CEACR) - adopted 2008, published 98th ILC session (2009)

Employment Policy Convention, 1964 (No. 122) - Czechia (Ratification: 1993)

1. Articles 1 and 2 of the Convention. Employment trends and active labour market policies. The Committee notes the Government’s detailed report received in August 2007 including the comments and a statement from the Czech–Moravian Confederation of Trade Unions. The Government indicates that unemployment fell to 8.1 per cent in 2006, down from 9 per cent in 2005 and, as at 31 May 2007, the registered unemployment rate decreased to 6.4 per cent. It further indicates that in 2006 the employment rate increased by 1.3 per cent over the previous year and that employment was at its highest level since 1999. The highest unemployment rate was registered in the northern regions of Bohemia and Moravia. Approximately 41 per cent of unemployed persons are long-term unemployed (for longer than 12 months). In terms of age structure, the highest specific unemployment rate is among those up to 25 years of age (15.9 per cent as at 31 December 2006), which is two times more than the overall unemployment rate. The Government confirms that it must keep fighting the structural causes of unemployment so that, by 2010, it meets the EU goal of a 60 per cent employment rate. The Committee asks the Government to provide information in its next report on various policies and programmes promoting regional development and how these policies and programmes will translate into productive and lasting employment opportunities for the unemployed and other categories of vulnerable workers such as young people, older workers and persons with disabilities.

2. The Committee notes that the National Reform Programme 2005–08 was approved by the Government under Resolution No. 1200 of 14 September 2005. Special attention is paid to groups at risk of social exclusion such as poorly skilled workers, the long-term unemployed, persons with disabilities and older workers. In its 2006 observation, the Committee asked the Government to continue to report on how employment policy measures are kept under regular review within the framework of a coordinated economic and social policy. The Government indicates in its report that the basic task of achieving the goals of the employment rate and thus reducing unemployment primarily requires the implementation of systemic changes. It also indicates that this goal cannot be achieved merely by means of the active employment policy but that it is also necessary to respect the broader dimensions influencing employment, such as the economic policy, tax and budget policy, education policy, social policy and regional policy. The Committee further notes that the Czech–Moravian Confederation of Trade Unions has stated its opposition to the draft bill for the proposed public finance reform. The Czech–Moravian Confederation of Trade Unions indicates that the reform proposals are primarily aimed at the sharp lowering of taxes for those inhabitants and companies with the highest incomes and the greatest holdings, a fundamental change of the distribution and redistribution systems in society, and therefore a pronounced reduction of social solidarity. The opinion of the Czech–Moravian Confederation of Trade Unions is that the reform will not lead to the proclaimed social guarantees, but will bring about a sharp decline in income and social expenditures, with implications for a majority of the people, namely employees. The Committee requests information on the manner in which the social partners’ views are taken into account when formulating, and enlisting support for attaining, the employment objectives of the National Reform Programme and the public finance reform.

3. Education and training policies. The Government indicates that education reform included in the National Reform Programme focuses on enhancing the quality of the workforce, expanding the possibilities of education and training, and supporting citizens’ ability to cope with the demanding conditions of the evolving labour market. It includes an amendment to the education law (Schools Act), the adoption of a law on the recognition of the results of further education and the creation of a functioning system of lifelong learning. The Government also describes in its report the training and retraining of employees under specific investment incentives. For example, in 2006 the Ministry of Labour and Social Affairs awarded grants to 29 investors for the training or retraining of 3,320 employees in new positions intended for highly skilled workers. The Committee asks the Government to provide updated information on the impact of such measures in overcoming the difficulties in finding lasting employment for young workers and other categories of vulnerable workers entering the labour market.

4. Business development. The Government indicates that the support of businesses and the business environment, especially to small and medium-sized enterprises (SMEs), is based on a system of direct and indirect financial assistance. One of the main measures focusing on the direct support of SMEs via resources from EU funds is the Enterprise and Innovation Operational Programme (EIOP) approved under Government Resolution No. 1302 of 13 November 2006 and complemented by national SME support programmes in accordance with Government Resolution No. 1425 of 12 December 2006. The Committee asks the Government to include information in its next report on the effects of these measures on employment creation. It also asks for information concerning the methods used by the Government to improve the success rate of young entrepreneurs and to involve the social partners in informing SME owners and entrepreneurs of key labour market concerns and opportunities.

5. Article 3. Participation of the social partners in the formulation and application of policies. The Government provides an overview of the plenary sessions of the Economic and Social Council with regard to consultations with the social partners in 2006. Furthermore, the social partners participated in a second joint work programme of European social partners, 2006–08 that is based on joint analysis on the key challenges facing Europe’s labour markets. On that basis, the social partners wish to contribute to support economic growth, job creation and modernization of the EU social model. Among the expected outcomes of such cooperation is an agreement on joint recommendations and priorities in employment at the European and national levels, and an autonomous framework agreement on either the integration of disadvantaged groups in the labour market or lifelong learning at the European level. The Committee refers to point 2 of this observation and asks the Government to also include indications in its next report on the manner in which the consultations held by the Economic and Social Council have contributed to the implementation of an active employment policy.