As a result of new legislation on collective bargaining which was approved last year, hundreds of engineering companies will now have to increase salaries, affecting almost all companies in the sector with more than 20 employees, writes the Hospodárske noviny daily on Tuesday. Salary increases should take place in 700 engineering companies that together employ more than 100,000 people.
According to Martin Karlubík from a company called Klartec, such increases will result in cuts to employee perks or the cancellation of future investments. Experts also warn that the obligation to increase salaries will lead to lay-offs. “There's a possibility that the increased cost will be unbearable for some companies and could bring many to bankruptcy”, said INEKO think-tank analyst Peter Goliaš. The Labour, Social Affairs and the Family Ministry, which has two months to decide whether it will approve the agreement submitted by trade unions and the engineering employers union, believes that the agreed salary increases will result in better working conditions. “Based on analyses, we don't expect any growth in unemployment”, said ministry spokesperson Michal Stuška.
