Discretion and (de)centralization in wage bargaining in the construction, hospitality, urban transport and waste management sectors: A study on Czechia

Abstract

This report identifies and analyses the wage setting practices in Czechia, focusing on four specific sectors – construction, hospitality, urban transport, and waste management. As part of the BARWAGE project, this report seeks to understand how exactly wage is  setting in these sectors, with a focus on low-wage workers (if relevant) is occurring, which actors are involved, what is the starting point of this process and where does it lead to in terms of institutional stability or change of the wage setting institutions. The findings reveal that sectoral wage setting has historically played a minor role, with only certain wage components, like bonuses and special cases, being adjusted. These adjustments set a base but can be overridden by company collective agreements. Except for the construction sector, sectoral collective bargaining is declining, as seen in urban transport, or is nonexistent, as in waste management. Wage setting is primarily driven by company-level bargaining, with the statutory minimum wage having a limited impact, except in hospitality. Individual bargaining is not significant. In unionised workplaces, wage negotiations are typically conducted by the union, with little individual negotiation.