Ukrainian personnel – a contribution to the future of the Czech economy, believes President of the Economic Chamber of the Czech Republic Vladimir Dlouhy
As Radio Prague notes, the head of the Economic Chamber advocates for greater openness of the Czech labor market and acceleration of the process for obtaining work permits.
“The fact remains that the Czech economy is successfully gaining momentum. However, this is not lasting long and not in all respects. The level of wages is not growing as fast as people would like, and we also need to increase output of products with a high level of added value. Third, we need a sufficient number of our own, Czech qualified personnel.
Export of foreign labor, in the long term, will not solve the problem, and Ukrainians will not save us. However, a short-term effect can be achieved through foreign personnel. They can help in sectors where the labor shortage has reached a critical point. I see no obstacles to ‘patching the hole’ with a short-term opening of a channel for the influx of specialists from Ukraine. The temporary respite can be used to restructure our own education and vocational training system, as well as to develop the research segment, to create a source of our own personnel.”
According to the Economic Chamber, without a quick launch of the mechanism for the influx of personnel, the situation in a number of sectors could worsen. And the main role in this process is played by the country's government, emphasizes Vladimir Dlouhy:
“The measures taken so far are insufficient. We talk about this constantly. The government, apparently under pressure, including from trade unions, is not too inclined to open the Czech labor market to labor from Ukraine. Moreover, Czech entrepreneurs constantly declare their desire to hire Ukrainians. This is due to cultural and linguistic proximity. In addition, the level of education of people from Ukraine is quite high. They simply have no work in their homeland.
Why not take advantage of this in the short term? However, the situation now is such that, with demand for 100,000 workers, we are implementing a program that allows us to accept only 5,000 Ukrainians. Moreover, after initial processing by the Economic Chamber and the Confederation of Industry of applications received from enterprises, it takes another five months for the Ministry of the Interior, the Ministry of Foreign Affairs and the consulate in Lviv to process the necessary permits. Something is wrong here!”
What consequences await companies due to the shortage of qualified employees?
“It must be emphasized that we are talking specifically about qualified personnel! Because as soon as people start talking about Ukrainians, many imagine an unskilled worker sweeping the yard or performing other menial duties. In addition, based on this perception, trade unions claim that companies aim to pay Ukrainians minimum wages. And this is supposedly supposed to slow down wage growth for Czech workers. But that is not true!
Given my personal experience traveling to different parts of the country and the results of research conducted, it seems to me that, first of all, there is demand for people with professional qualifications. Workers are needed – from mechanics and drivers to operators of complex machines. People from Ukraine know how to do all this, and Czech entrepreneurs are very often willing to pay them salaries exceeding 20,000 crowns (at the current exchange rate, that is more than 740 euros).”
Vladimir Dlouhy does not see the necessary support from the government for the idea of opening the Czech market to Ukrainian personnel.
“The real obstacle is the lack of staff in the apparatus of the Ministry of the Interior and the Ministry of Foreign Affairs processing applications. The ‘Civil Service Act’ hinders the employment of Ukrainians. I am not discussing whether it is good or bad. The law was adopted and it contains restrictions. However, I believe that if there is a will, the problem can be solved, for example, through temporary exceptions. I do not want to act as the main advocate for the influx of Ukrainians into the Czech Republic, but this is a short-term way to solve current problems.”
The influx of Ukrainian labor into the Czech Republic will help manufacturing companies overcome the crisis of personnel shortage. However, to accept foreigners, the state will probably need additional funds, for example, to expand kindergartens, as migrants will start families. An important issue is also medical care.
“Ten years ago in Prague, in the seventh district, near the Výstaviště exhibition complex, there was an illegal ‘labor exchange’. On Saturday mornings, hundreds of Ukrainian workers would gather there, and dealers would ‘pick them up’ depending on needs. But today the situation is different.
About Ukrainians we can say that, although not all, most of them find work in the Czech Republic legally. Employers pay social contributions for them, and the workers themselves pay taxes in the Czech Republic. They are gradually becoming our citizens, albeit of foreign origin. They live here and pay all necessary contributions, both to the social system and to the medical system. Why shouldn't their children live here on the same terms as native Czechs? In addition, in the case of Ukrainians, there is probably no threat that they will create some large diaspora that will overwhelm our culture and destroy historical roots.”
President of the Economic Chamber of the Czech Republic Vladimir Dlouhy also emphasizes that the issue of the influx of foreign labor from Ukraine must be handled by state structures. Otherwise, there is a threat of expansion of illegal employment and pressure to slow down wage growth, which Czech trade unions use to argue their negative position on this issue.
“If restrictions remain in place or intermediary agencies are allowed to operate, they will always bring someone here. In some cases illegally, in others legally. But they will always take a margin from the earnings of Ukrainian workers. And it is precisely in this case, if the government does not regulate the market and does not open it, there will be pressure to lower wages. As a result, Ukrainians will receive much less, and the outcome will be negative.
In addition, we expect the introduction of visa-free tourist relations with Ukraine, meaning visa-free entry for up to 90 days. And if by that time we do not introduce regulatory mechanisms for the inflow of labor from Ukraine, then we should fear an increase in illegal employment and, consequently, renewed pressure to lower wages,” says Vladimir Dlouhý, head of the Economic Chamber of the Czech Republic.