Czech public sector unions unite for protest

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Thursday September 02, 2010 12:21:15 AM GMT

PRAGUE, Aug 31 (Reuters) - Czech health workers, civilian army staff, road workers and state administration employees plan to join police and firefighters in a demonstration next month to protest against government plans to slash spending.

The move, announced by a union leader on Tuesday, suggests that opposition to the government's austerity plans is spreading in a country where labour unrest has been rare.

The centre-right administration has announced that it will slash costs next year as part of a savings drive that will lead to layoffs and pay cuts across the public sector.

It is aiming to narrow the budget gap to 4.6 percent of gross domestic product (GDP) next year from 5.3 percent this year, relying on spending cuts to do so rather than tax hikes.

The additional public sector workers will join a demonstration planned for Sept. 21, a little over a week before the government must send its 2011 budget to parliament.

"The situation is extremely serious," said Alena Vondrova, who heads the public sector unions.

"This is a political decision done without any expert analysis. This is totally unacceptable," she told a news conference, saying unions also opposed plans to make public sector wages more flexible by making bonuses a larger portion of the overall salaries.

Prime Minister Petr Necas said last week 5-8 percent of state workers would be dismissed to achieve the cabinet's plans to cut the fiscal gap to 3 percent of GDP by 2013.

His government also plans to change the labour code to make it easier for firms to hire and fire workers.

The Czech Republic has a public debt load of around 37 percent of gross domestic product, half of the European average.

But the debt has been rising fast and analysts say it will spin out of control unless the government reforms the pension, health and welfare systems.

Necas's three-party coalition pledged to carry out the reforms when it was appointed last month. (Reporting by Roman Gazdik, writing by Jan Lopatka; editing by Noah Barkin)

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