Czech Republic

People Management Forum (PMF)

Czech association for Human Resources Development (CSRLZ)
Address :
Lublaňská 57/5, Praha 2, 120 00, Czech Republic
Phone number :
+420 222 560 073
Fax number :
+420 224 232 353
Website :
http://www.peoplemanagementforum.cz
Email address :
info@hrforum.cz
Other information

President
(Non-Executive):

Mr. Frantisek Mika

Executive Director:

Mrs. Zita Lara
Tel.: +420 222 560 073
Fax: +420 224 232 353
E-mail: zitaeapmdotlaraeapmathrforumeapmdotcz

International Manager:

Mrs. Rostya Gordon-Smith, Mrs. Zita Lara

Date Association Founded:

1994

Total Number Of Members:

300

Membership Categories:

Company membership

Recognition of other External Qualifications:

HREA - Excellence Award, Talent Forum - Award

Title of Primary Publication and Frequency of Issue:

HR Forum, monthly
Paid advertising: Yes
Language: Czech with English review

Details of Professional Education Schemes:

Certified HR Manager Programme with PWC, Academic advisor for MSc in Strategic Human Resources Management. (Certified by: Sheffield Business School and Masaryk Institute of Advanced Studies)

Annual National Conference Dates:

March 2013

Other Activities:

Conferences, Round Tables, Exchange Meetings, Workshops and Seminars on up-to-date issues

Summer HR school - 2 day training programme

HR know how - annual conference

Country Profile 2004

LOGO PFM FULL COLOR CZECH REPUBLIC CMYK
Economy

  • Nominal GDP (CZKbn) 2408,0 (2002); 2480,3 (2003)e; 2614,7 (2004)f
  • Nominal GDP (US$bn) 73.6% (2002); 87.9 (2003)e; 102.2 (2004)f
  • GDP per capita (US$) 7,176 (2002); 8,581 (2003)e; 9,994 (2004)f
  • Real GDP growth 2.0 (2002); 2.9% (2003)e; 3.1% (2004)f
  • State budget balance (CZKbn) -45.7 (2002); -109.1 (2003)e; -120 (2004)f; -83.6 (2005)f
  • State budget balance (% of GDP) -1.9 (2002); -4.4 (2003)e; -4.6 (2004)f; -2.9% (2005)f
  • Consumer prices (% y-o-y, end period) 0.6 (2002); 1.0 (2003)e; 3.5 (2004)f
  • Consumer prices (% y-o-y, period average) 1.8 (2002); 0.1 (2003)e; 2.3 (2004)f
  • Exchange rate (CZK/US$, end period) 30.1 (2002); 25.7 (2003)e; 25.5 (2004)f
  • Exchange rate (CZK/US$, period average) 32.7 (2002); 28.2 (2003)e; 25.6 (2004)f
  • Exports (fob, EURbn) 40.7 (2002); 43.1 (2003)e; 40.9 (2004)f
  • Imports (fob, EURbn) 43.0 (2002); 45.3 (2003)e; 43.5 (2004)f
  • Trade balance (fob-fob, EURbn) -2.3 (2002); -2.2 (2003)e; -2.6 (2004)f
  • Current acount balance (EURbn) -4.4 (2002); -4.9 (2003)e; -3.8 (2004)f
  • Current account balance (% of GDP) -6.0 (2002); -6.3 (2003)e; -4.6 (2004)f
  • Total external debt (US$bn, end period) 26.3 (2002); 27.2 (2003)e; 29.0 (2004)f
  • Total external debt (% of GDP, end period) 35.7 (2002); 30.9 (2003)e; 28.4 (2004)f
  • International reserves (US$bn) 23.6 (2002); 26.8 (2003)e; 28.0 (2004)f
  • Import cover (months) 6.0 (2002); 5.5 (2003)e; 5.5 (2004)f

e/f = estimate/forecast

Politics

  • Party in power :
    A three-party coalition government; leading party: left-of-centre Social Democrats (CSSD), junior parties: conservative Christian Democrats (KDU-CSL) and liberal Freedom Union-Democratic Union (US-DEU).
  • Changes over the last 12 months :
    • The Czech government has been struggling with the slimmest of majorities in parliament and growing public discontent in recent months. Poor performance of CSSD in the EP elections in June (9%) first led to the rift within the party and then to the resignation of Mr Spidla´s cabinet in July. A new cabinet, led by ex-interior minister Stanislav Gross, was appointed in August 2004.
    • EU accession in May 2004
    • EP elections in June 2004: 1) Civic Democrats – ODS (30%), 2) Communists – KSCM (20%), 3) Nezávislí (Independents) – European Democrats (11%), 4) Christian Democrats – KDU-CSL (9.6%), 5) Social Democrats – CSSD (8.8%)
    • February 04: first year of term of new president – Vaclav Klaus
  • Major issues on the agenda :
    • state finance restructuring – state budget for 2005, high state budget deficit in breech of EU Convergence Programme, growing state debt
    • discontent in the public sector – major wage increase for some state employees (police force, firefighters) as opposed to doctors and teachers
    • EU impact, regulations (in agriculture)
    • new labour code, employment, ...
    • pension system reform
    • health care sector financial reform
    • ageing of population, demographic structure, immigration
    • low labour mobility
    • housing, rent control vs. Free market rent
    • slow court proceedings
    • juvenile crime

Labour market

  • Unemployment rate : 9.8% (2002); 10,3% (2003)e; 9.8 (2004)f
  • Skills shortages : lack of university educated workforce, foreign languages, computer literacy, management skills
  • Rate of pay increases : recently in public sector the average of nominal wages was 10% (caused by new methodology), compared to moderate growth in the private sector
  • Trends : In 2004 and 2005, labour market performance should improve in line with the rebound in economic activity. Employment, which contracted in the past two years, is expected to increase by 0.4% in 2004 and 0.6% in 2005, while both registered and survey unemployment rates are anticipated to fall, especially in 2005.

HR issues

  • New employment legislation :
    • New labour code as of 2001 – deep social protection for employees (extended annual holiday, consultation with worker reps. before lay-offs, limits on overtime, right to information about the company, „golden handshakes“ ...)
    • Further amendment in 2003 – to comply with EU norms (discrimination, sexual-harassment, equal treatment of EU nationals and Czechs, ban on repetition of time-limited contracts, ...)
    • New amendment in autumn 2004
  • New government initiatives :
    • Subsidised computer courses for public and unemployed,
    • Green cards for skilled workers from the east

Taxation and social insurance law

  • Social security contribution : social & health insurance
    • a) 35% of gross wages paid by employers
    • b) 12,5% - “ - by employees
  • Tax rate :
    • a) individual tax rate – top rate 32%, lowest 15%
    • b) corporate rate – 28% (2004), 26% (2005), 24 (2006)
  • VAT 19% and 5%