The Czech state will provide a subsidy of CZK 30M to glassworkers at the debt-ridden group Bohemia Crystalex Trading (BCT) & Porcela Plus who have not been paid for several months due to the current crisis, Labour & Social Affairs Minister Petr Necas told reporters 12 March 2009. The subsidy will be distributed to the affected employees by trade unions. Mr. Necas has agreed on the aid with Finance Minister Miroslav Kalousek and the trade union leadership. The subsidy will be provided in March 2009, Mr. Necas said. "It is to solve the most urgent cases when employees have been without any income for 3 or 4 months", Mr. Necas said. Vladimir Kubinec, trade union leader of glass & china makers, welcomed the subsidy. "As soon as I receive the information officially, I am ready to call off the demonstration we plan to stage in front of the government office 31 March." Mr. Kubinec said. The group consisting of BCT and related Porcela Plus, employing 7,000 staff together, was the largest glass and china maker in the Czech Republic until 2008. Since November the group has been in insolvency proceedings due to a lack of working capital. The Sklarny Kavalier and Karlovarsky porcelan units are the only ones in the group currently producing. Other companies had to halt production when banks drew off all cash from their accounts and the firms had no funds to finance further production or pay wages to employees. The workforce has been reduced by 5,000 through gradual lay-offs; a number of those losing their jobs have not been paid for several months. The CZK 30 million subsidy is an extraordinary aid. In the future, employees in a similar situation should be protected by an amendment to the insolvency law, which was recently approved by the government. Under the amendment, employees should receive three monthly wages after their employer is declared insolvent. Mr. Necas said he hoped the Chamber of Deputies would pass the amendment as early as March or April 2009. The amendment would also allow retrospective payment of wages to BCT and Porcela Plus employees. According to preliminary estimates, the state may pay CZK 90-100 million in these wage compensations.
