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Will Ukrainians earn more?

Czech Ministry of Labour proposed to pay Ukrainians more than Czechs

If the cabinet approves the document, then in 2019, 40,000 Ukrainians will be able to come to the republic for work, whereas last year's quota was 19,600 people. The project appeared two years ago as a reaction to the acute shortage of labor in the country. This is reported by Vinegret.cz with reference to the portal Aktualne.

At the same time, one of the points of the decree has already caused serious controversy. Minister of Labour Jana Maláčová and union leaders propose to set a minimum wage for Ukrainians at a higher level than for Czech citizens. Despite the seeming absurdity, this measure is aimed primarily at protecting Czech workers: companies will be motivated to look for employees primarily among local residents, rather than chasing cheap labor from the east.

The authors of the innovation are confident that it will also help migrant workers from Ukraine, whom Czech companies often underpay, taking advantage of their vulnerable position.

Minister of Labour Jana Maláčová would oblige employers to pay Ukrainian employees no less than 1.2 times the so-called guaranteed wage (zaručená mzda). Depending on the specialty and qualification, at today's rates this will be from 16,020 to 32,040 crowns. The second option is to pay Ukrainians no less than the median wage in each specific profession (the income level above and below which an equal number of workers earn).

Under the first option, for example, a Ukrainian electrician on a construction site would receive 23,820 crowns per month (before taxes) according to the fifth tariff. Whereas a Czech for the same work would earn only 19,850 crowns.

In the second case, the difference could be even more significant – up to 7,600 crowns in favor of the Ukrainian electrician. Unions prefer the second option.

"If an employer needs employees, why does he offer foreigners such a low salary that does not reach the earnings of Czechs? There are many vacancies with very low salaries that Czech workers do not take. Then these positions are offered to foreigners, and they respond," said the chairman of the Czech-Moravian Confederation of Trade Unions, Josef Středula.

The Chamber of Commerce of the Czech Republic strongly opposed the innovation. They believe that it contradicts the labor code, the principles of equality and competition. At the same time, the chamber reminded that today the Czech labor market lacks about 440,000 employees, mainly in blue-collar professions.

However, whether this point will remain in the decree of the Czech cabinet is still unclear.