Blog The holding companies uniformly increased wages.

While across-the-board salary increases are among the outcomes of the agreed-upon collective agreement, it was the management that decided to grant these raises to employees this year before reaching an agreement with the unions.
“It was my decision, demonstrated by the fact that we started raising wages in January and completed it in April, even while negotiations with the unions were ongoing. I have always preferred an individual approach over uniform wage increases, which better rewards skilled and hardworking employees. However, this year, considering the group's results, I chose an exceptional step,” emphasized Miroslav Dvořák, CEO and Chairman of the Board of MOTOR JIKOV Group a.s.
The across-the-board wage increase means that every employee benefited, mostly by 600 CZK per month. On average, this translates to a three percent raise. “From this amount, 500 CZK went into the base salary and 100 CZK into the variable component. Supervisors will discuss the specific amount with their subordinates. Exceptions to this year's increase include employees who have been formally reprimanded for non-compliance with duties, those leaving the company, and newly hired staff,” added Iva Fantyšová, HR Director of MOTOR JIKOV Group a.s. The total annual cost for these wage increases amounts to 5.4 million CZK.

Among new provisions in the collective agreement, which is valid from April 1, 2017, to March 31, 2018, is an increased social assistance contribution. “This pertains to cases of employee death, where the company will cover funeral expenses up to 20,000 CZK, increased from 12,000 CZK,” clarified Iva Fantyšová.
The new collective agreement also maintains a higher contribution to employee pension savings for those working at the company for more than three years, amounting to 700 CZK per month. “We observed a significant increase in the number of employees saving for retirement through this method, thanks to the higher amount the company has been providing since last year,” noted the HR Director.
Employees with at least one year of service will again receive benefit vouchers this year, at twice the value of last year’s—1,000 CZK—for use in sports activities, health care, or cultural pursuits.
“Last year's change in the social expenses area proved effective, as employee support for leisure activities is now entirely managed by the company. The offerings are thus available to all employees. We continue to contribute to meal allowances, children’s recreation, provide loans for housing purposes, support sports activities of employee groups, and offer tickets to football and hockey matches. We are also expanding our benefits,” added Iva Fantyšová.