After nearly a year of not being able to operate at normal capacity, České dráhy (Czech Railways) has been forced to lower some employee’s wages, and get rid of others, Irozhlas reports.
Gabriela Novotná, the spokesperson for České dráhy, announced on Sunday that the company planned on reducing wages for 700 administrative employees, and likely release others in a plan that is supposed to only last for a year while the COVID-19 restrictions are hampering business.
Ivan Bednárik, CEO and chairman of the board of directors of ČD reiterated the measures are only temporary as the company waits out the coronavirus situation.
“The pandemic has to end one day, so if we reduce contractual wages this year, it won’t be forever. The contractual salaries of directors, managers, and other employees, mainly in administrative positions, are re-adjusted annually under the agreement of both parties. This can depend on the performance of the individual employees and the financial capabilities of the company.”
Jana Maláčová, Minister of Labour and Social Affairs tweeted in opposition to the wage cuts, saying, “Wage cuts due to the abolition of the super-gross wage tax are unacceptable, especially for a state-owned corporation…” Ivan Bednárik, however, said that the wage cuts have nothing to do with the recent nixing of the super-gross wage tax.
ČD hasn’t yet released their final financials for 2020, but clocked a total loss of CZK 1.98 billion in the first half of the year, implying a total loss of potentially double or more than that.
Image via https://www.cd.cz/