Senate rejects Labour Code

30-03-2006

The upper house of Parliament, the Senate, has rejected a new Labour Code, which was pushed through the lower house by the Social Democrats and the Communists. The opposition Civic Democrats and the two junior ruling coalition parties the Christian Democrats and the Freedom Union say the bill threatens the flexibility of the labour market and is unconstitutional because it gives trade unions too much power, and makes it difficult for employers to let go of unproductive staff and employ new people.

In November, over 25,000 members of 51 trade unions flocked to Prague to support the proposed new Labour Code in a demonstration that was the biggest that the country has seen since the Velvet Revolution sixteen years ago.