There is no threat of an army of the unemployed here, says an ODS expert

A dispute is brewing in the coalition of five. The government parties are arguing about the introduction of dismissal from work without giving a reason. ODS and TOP 09 want to push for radical change in spite of the populists and the trade unions. Why is the government addressing this issue right now?

Guest I’m asking Jan Skopeček was the deputy chairman of the Chamber of Deputies, an economic expert of the ODS and the leader of the Spolu coalition candidate in the Central Bohemian Region.

The ruling ODS and TOP 09 are still trying to enforce the dismissal without giving a reason in the House of Representatives. And this despite opposition from the opposition, trade unions, and what is more important, part of the coalition partners. According to the Minister of Labor and Social Affairs, Marian Jurečka (KDU-ČSL), this plan can never come to fruition, because it would be in conflict with the coalition agreement (according to it, the amendment must have the consent of everyone, including the minister in charge).

However, ODS and TOP 09 support the changes, saying that a more flexible labor market is a commitment from the government’s program statement. According to Jan Skopeček, an economic expert of the Citizen Democrats, the dismissal without giving a reason should definitely go through: “I’ve been talking about it from the very beginning. Even if it does not appear in the government amendment, my colleagues from the ODS club will undoubtedly present it as an amendment. To explain to MPs and colleagues that this is nothing drastic.”

The coalition partners want to convince, for example, the amount of the severance pay that would then belong to the employee. “I would like for us to come to some kind of compromise in those debates, where perhaps we will submit it, because the KDU-ČSL will not want to be associated with it in any way, but the rational arguments will prevail. And the fact that we can agree on some kind of compromise, for example in the amount of the severance pay, will prevail,” Skopeček added.

Why didn’t the government coalition implement fundamental changes in the labor market sooner? How did the consolidation of public finances succeed?

You can play the entire interview in an audio player, in your favorite podcast app or in a video.

What was said in the conversation?

1:00 a.m The liberalization amendment to the Labor Code is currently in the interdepartmental comment procedure. It contains a number of changes that should lead to greater flexibility of the Labor Code. Here, I think that we will undoubtedly prevail and that there will be a majority agreement on it within the government coalition. And it’s a bit of a shame that the set of measures only talks about dismissal without giving a reason, however important it is of course. We certainly have time to discuss this, including the possible parameters of termination without reason.

2:00 And would you personally like to try loading it? – Certainly yes, I’ve been talking about it from the very beginning. I assume that even if it does not appear in the government amendment, my colleagues from the ODS club will without a doubt present it as an amendment. To explain to MPs and colleagues that this is nothing drastic, that this is nothing extraordinary, that at a time when we have very low unemployment, at a time when employers are looking for both skilled and unskilled workers, there is no threat of mass redundancies or crowds of unemployed.

3:00 a.m It is a measure that will help not only employers, but ultimately also employees. Because some groups of employees are hired today, for example, for the abused blackmail system or through employment agencies. And that’s only because employers are afraid to hire those employees for standard working hours, because then they have very complicated administrative and financial costs in the sense of how to possibly fire them when the company might not have any orders. So, by loosening this, we would actually simplify the hiring of employees.

5:00 But your coalition partner Marian Jurečka strongly rejects it and says that if you propose it, it will be a violation of the coalition agreement. – It’s at the meeting of the coalition of five. I would like for us to come to some kind of compromise in those debates, where perhaps we submit it, because the KDU-ČSL will not want to be associated with it in any way, but the rational arguments will prevail. And the fact that we can agree on some kind of compromise, for example in the amount of the severance pay, will prevail.

6:30 Isn’t it a mistake that you only came up with such an explosive proposal before the elections? – But certainly, I am also a supporter of the fact that the most important, most drastic steps should be taken at the beginning of the election period, because then of course the willingness of the coalition parties also decreases, and nervousness on the part of the voters also increases. On the other hand, compared to the previous ones, this government is committed to relatively important changes, whether it is the labor code or pension reform. It is good that things have started to be resolved.

8:00 Are you afraid of unions? They announced another protest on May 21. – If it were up to the trade unionists, we would do nothing at all in this country, they are unable to perceive reality. It is holding back any reform, any change that this country needs. Fortunately, the strength of our trade unionists is a little bit different than in France or other countries, so I believe that the government will be able to withstand it.

11:00 Have you come up with a recipe for protecting the most vulnerable groups during the introduction of dismissal without giving a reason? – They’re just paying more for it right now. Because the fact that the employer knows that if he hires such a person, that he will have a very significant financial and time problem at any time in the future, how to possibly fire him, limits the employer.

12:00 But you don’t want to protect them with any special measures. So you’re saying that termination without cause will protect them? – Termination without cause does not protect them, they are protected by the labor code, and they are protected by our welfare system, which has sufficient tools to catch people who are out of work, to catch people who are below some income threshold of what we consider as society for adequate.

12:30 p.m There is no threat of an army of the unemployed here. No reasonable employer will fire employees who he considers important for his company and who really bring something to him. And I say again, in the end it will also help those employees.

2:30 p.m (to the consolidation package) Are you disappointed that you promised significant cuts to subsidies and basically didn’t make any? – If I think that more cuts could be made to the subsidy system and that more of them could be removed, I will definitely confirm that to you. And I would be happy if our coalition government decided to make further cuts in subsidy systems.

16:00 What about the tax on extraordinary profits? Did the Ministry of Finance fail in that absolutely wrong revenue estimate? – I do not want to slander the ministry, which is under the administration of my own political party. On the other hand, I tried to convince my colleagues and my Minister of Finance that the so-called windfall tax is not an ideal tool to get some extra tax revenue in those times of extraordinary profits. I don’t know if it’s a failure. I’m not happy that my words were taken. I did not vote for this tax.

20:00 If there was a vote to cancel the windfall tax, I would of course vote for it and I would like it to be canceled as soon as possible.

25:00 (for regional elections) Would you say that it is a clear priority for you to create coalitions in the regions that copy government coalitions? Or is it not important to you? – I would be very happy if the ANO movement with the SPD did not start to rule in Central Bohemia. So we will do everything to be able to form another coalition. But of course that is wishful thinking, the voters will decide.

I am asking, Marie Bastlová