Czech Post, the state-owned postal company, has announced that it will raise tariff wages for its employees by an average of 5% starting from April 1, 2023. In addition, postal employees will also receive more valuable meal vouchers worth 100 crowns without contributing more. This move is expected to cost the company around CZK 397.3 million by the end of the year, according to a statement from company spokesman Matyáš Vitík.

The trade unions, however, have viewed the management’s proposal as inadequate and have demanded a 10% wage increase for the employees. The management and the unions have agreed to continue wage negotiations in June due to the company’s economic situation.

Czech Post, which operates 3,200 branches and employs around 25,000 people, is entitled to reimbursement from the state for the provision of essential services up to CZK 1.5 billion. The company had halved its loss to CZK 681 million the year before last, while its operating income had risen by CZK 400 million to CZK 19.55 billion. The company’s financial performance is closely monitored by the government due to its strategic importance as a provider of essential services.

The decision to raise the tariff wages and meal vouchers for employees comes at a time when inflation is rising in the country, and employees are facing increasing costs of living. The move is expected to improve employee morale and retention, which is important for the smooth functioning of the company’s operations.

At the same time, the company needs to balance the need to improve employee welfare with its financial viability. The company has been grappling with losses in recent years, and its financial performance is affected by several factors, including rising competition from private postal companies, declining mail volumes, and the impact of the COVID-19 pandemic on its operations.

In conclusion, the decision by Czech Post to raise the tariff wages and meal vouchers for employees is a positive step that is expected to boost employee morale and retention. However, the management and trade unions need to continue their negotiations to arrive at a mutually agreeable solution that balances the need for employee welfare with the financial viability of the company.

Article by Prague Forum