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Wages will be rising despite the unfavourable situation. Anyway, the company will not avoid austerity measures

An amendment to the collective agreement concerning wage growth was signed on Tuesday 15 December by the management of Třinecké železárny with representatives of the Trade Union organizations of KOVO Třinecké železárny. Both parties have agreed on wage growth next year starting from 1 January 2021.

The tariff wage with the relevant premium will increase by at least CZK 400 per month. The flat rate for shifts and the night surcharge will also increase by an average of 200 crowns. In addition, all employees of the company received an extraordinary reward of an average of over CZK 6,000 this December. Extraordinary bonuses will be paid next year if the economic goals are met.

This year, the company's finances are affected by the difficult situation on the steel market and the consequences of the pandemic of a new type of coronavirus. However, Třinecké železárny limited its production only slightly. "As one of the few companies, we were able to supply our products to customers even during a pandemic. We owe this to the quality work of salespeople, the commitment and discipline of our people," says CEO Jan Czudek.

He added that the economic situation in European markets and the excessive pressure to rapidly transform into low-carbon production did not favour steel producers at all. "We have to face all of these challenges next year," says Jan Czudek. The agreed growth corresponds to this. However, the company will not avoid austerity measures. We will look for them in all activities, investments and employment in order to increase production efficiency.

This year, collective bargaining has been affected by the coronavirus pandemic. "Due to the government measures, we were unable to conduct the proceedings of the Conciliation Commission and the bodies of the basic organization units properly. That is why we asked the company management and shareholders for helpfulness, thanks to which we managed to reach an agreement in such a short time," stated Marcel Pielesz, Chairman of the Basic Organization Unit of the KOVO TŽ Trade Union.

According to him, this will make possible to focus on meeting the set goals in production, personnel and economy, and work together on investments that will improve the flexibility and competitiveness of the company.

"We have another challenging year ahead of us, we can hardly expect the pandemic to suddenly disappear. We must now focus on sustaining the industry's transformation towards maximum CO2 reduction, while being able to continue to produce quality steel for our customers as before. Europe needs steel, steel needs Europe, and we must do everything we can to produce it in Třinecké železárny, "added Chairman Marcel Pielesz.

Next year, Třinecké železárny will once again offer employees a selection of benefits in the amount of up to CZK 5,000 per year, which they can use for their health for sports and relaxation activities. The company also offers a contribution to supplementary pension insurance and other benefits in the total amount of approximately CZK 2,000 per month for each employee. These include life insurance, food allowance, recreational rehabilitation care or interest-free loans for housing purposes.

The average earnings in the works in 2020 will slightly exceed the agreed amount of CZK 36,200 per month, thanks to the extraordinary remuneration for work in difficult conditions of the pandemic based on a favourable decision of the shareholders. Třinecké železárny currently employs more than 7,000 people, including the Tube Rolling Mill in Ostrava-Vítkovice, the Steel Drawing Plant in Staré Město, the Universal Mill in Bohumín, and the Billet Rolling Mill in Kladno.


Petra Macková Jurásková
Press Secretary of the Třinecké železárny - Moravia Steel Group
phone: +420 558 535 841
mobile: +420 602 265 738
e-mail: Petra.Mackova@trz.cz