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The economic crisis is forcing companies based in the Czech Republic to move production to other countires. As of last September a number of firms moved abroad, some of them the makers of traditional Czech brands. Hera margarine, Mochov vegetables, Solo matches and Akuma car bateries are some of the brands that will no longer be produced here. Hera margarine, Mochov vegetables, Solo matches and Akuma car bateries are some of the brands that will no longer be produced here. “The crisis has enabled owners to quickly and agressively close down productions. Companies are not just moving to lower labour costs but also to restructuralise and optimise their production and reduce overall expenses,” says Radek Schmied of the consulting companyContinue Reading

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Igráček plastic action figures are likely to come back in the spring of next year. Toy manufacturer Efko wants to launch production of the once ubiquitous toy in cooperation with the trading company All Toys, which bought the bankrupt producer of Igráček figures, the Prague-based cooperative Igra, last year. The company will present the reborn Igráček at the February toy fair in Nuremberg and start distributing the toy to stores immediately thereafter. “We developed new accessories and produced mock-ups and samples. Now we are ordering moulds which we will use to produce the toys,” Efko executive Miroslav Kotík told HN. The toy figure itself will remain unchanged but will be equipped with new tools. The new sets should come withContinue Reading

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AirVenture Oshkosh 2009, the world’s biggest aviation trade fair, ended Sunday. This year’s event was missing the usual stand sponsored by Czech Ministry of Industry and Trade, which is where Czech producers of small sport aircraft can usually be found. But the Industry and Trade Ministry prefers the air show in Friedrichshafen this year. “Supporting the same events as always would not be efficient,” ministry spokesman Tomáš Bartovský said, adding that CZK 1.3 million has been earmarked for Czech presence at the German fair (the same sum was allocated for Oshkosh last year). The Light Aircraft Association of the Czech Republic said this is an unfortunate step. “It is a pity because the official stand considerably supported the efforts ofContinue Reading

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The Labour and Social Affairs Ministry plans to introduce a four-day work week in an attempt to keep the unemployment rate from rising further. The government would subsidise companies’ wage expenditures while employees stay home due to a lack of orders. “At a meeting with unionists and employers on Wednesday, we came to an agreement that we will continue working on the idea of kurzarbeit,” said the ministry’s Marie Bílková, using the name a similar plan goes by in Germany. “But since it will be necessary to change legislation, I cannot imagine the system taking effect before the middle of 2010,” she said. There is a good chance that the system will be introduced. The Finance Ministry has not rejectedContinue Reading

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The state is seriously considering a plan to curb unemployment by shortening the working week. For 12 to 18 months, companies that owe no debts to the state could receive subsidies to pay employees to stay home one extra day each week. A working group of representatives of the Labour and Finance ministries, trade unions and employers is proposing that workers on furlough would receive 60% of their wages from their employer and 20% from the state. The shorter working week is intended to curb abuse of unemployment benefits and slow growth in unemployment. Unemployment in the Czech Republic reached 8.4% in July, with nearly half a million people out of work. Analysts forecast that unemployment will reach 10% byContinue Reading

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As recently as the beginning of 2009, it seemed that the Chotol hotel in Horoměřice would be almost empty this year. The fight for the establishment’s survival caused the management to resort to an unusual move. The three-star hotel with more than 90 rooms has decided to use part of its capacity for long-term leases. “We set out to nearby construction sites and started offering accommodation to the people working there,” the hotel’s Jana Sedlářová said. “It worked. We have already rented out some 20 double rooms this way.” As a result, employees from nearby construction sites make up a large portion of the guests on workdays. “Even though we are more expensive than workers’ quarters, we have found guests,”Continue Reading

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Those interested in buying a flat have reason to cheer. In the first quarter of this year, real estate prices have fallen by 3% since the last quarter of 2008. According to the Czech Statistical Office, prices have dropped even compared to the prices in the first quarter of 2005. Buyers looking outside of Prague will get even better deals, as prices outside the capital have fallen on average by 5%. In Prague it’s by an average of 1%. According to King Sturge analyst Ondřej Novotný, this trend will most likely continue. “The prices of new flats will probably stagnate, and when it comes to older flats, we are expecting an up to 10% decline,” he said. The economic crisisContinue Reading