Dear Colleagues,

certainly, it is known to you, that our Labour Union for Maintenance and Other Workers (hereinafter referred to as the “OÚP”) has started discussions with TPCA on the topic of the planned reduction of the 1st part of the guaranteed bonus for 2020 (hereinafter referred to as the “Guaranteed Bonus”). Following these negotiations, TPCA has repeatedly provide written information to employees explaining the reasons why the company considers that it is now more better for employees to reduce the first part of the guaranteed bonus. With this document, OÚP puts this information in perspective and clarifies some inaccuracies.

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  1. What is a guaranteed and variable bonus?

The guaranteed bonus is a component of your salary, which always belongs to you in the same amount if you do the work properly during the year or you were ready to work. It means, this is the 13th salary that you have to receive in full (half in July, half in December), no matter how well the company prosper during this year. The rule is that non-production shifts (due to a production shutdown) are considered to be production shifts, so they do not affect the amount of the Guaranteed Bonus.

The variable bonus is a component of the salary, which TCPA calls the final surcharge, and it is paid to you if the company’s results are average or above average. However, the company’s results have no effect on the guaranteed bonus, which we are talking about.

  1. What does my right to a guaranteed and variable bonus imply?

From the internal wage policy directive, which is available on the TPCA intranet. This is a binding rule for TPCA to follow. In other words, it is a “wage law” in force at TPCA, and it is therefore necessary to comply with it.

  1. Why do TPCA not yet intend to pay the full 1st part of the guaranteed bonus, when the name of this component already contains a “guarantee”, and the wage policy directive says the same?

TPCA’s view is, that it is necessary to take into account the extraordinary situation caused by the longer suspension of production in the first half of 2020. However, the relevant “wage law” does not allow such a TPCA procedure, which is why we are currently dealing with this situation with management. The word “guaranteed” is not pointless – because the directive explicitly states that you are always entitled to it, regardless of the economic situation of the company.

  1. If the directive on wage policy and in the TPCA material of 17 June 2020 state that the guaranteed bonus is adjusted (shortened) by non-production shifts, why does the OÚP deal with the company and legal representatives?

This possibility of reduction was added to the directive after the resumption of production. However, labor law prohibits retroactively changing the rules of the game to the detriment of employees. This provision therefore does not apply to non-production shifts for the first half of 2020 in any case and is legally unenforceable. Therefore, the reduction of the Guaranteed Bonus for this reason is not possible according to OÚP.

  1. Has the OÚP sufficiently taken into account the economic situation of TPCA affected by the shutdown due to measures against the spread of coronavirus infection?

We are well aware of the economic situation, and when dealing with the company, we repeat that we understand it. We do not claim that this is malicious action by TPCA, and we accept that we must take the economic peace of both parties into account in the negotiations. For this reason, we have proposed a compromise solution to the company, which takes into account its economic situation and at the same time saves the employee’s wage rights. However, we must state that there is an explicit clause in the Labor Code that any economic difficulties of an employer must never be passed on to employees.

  1. Why does TPCA consider that its conduct is in accordance with the law, and what does OÚP think of the relevant legal analysis?

The company assumes that you cannot be entitled to a salary for the period when you did not go to work, because it is a reward for work. We do not agree with this, because on the one hand TPCA used to pay employees a Guaranteed Bonus, despite their absence. In addition, the “wage law” explicitly states that non-production shifts due to downtime is  considered as a work shift, and the Guaranteed Bonus still belongs to you in its entirety.

  1. Is the TPCA information, provided in the response, true in terms of the amount of the final surcharge?

This applies if the KPIs are evaluated positively at the end of the year, similarly to the period from January to June 2020. However, no one knows this information and it cannot be predicted. If, for example, there is a higher number of accidents or defects on the car in the second half of the year, the mark will turn out badly, and you do not have to receive any additional payment. So it depends practically on chance, and there is no guarantee.

In other words, if the final mark is really evaluated in the amount of 3.84 or 4.49, the stated amount of the final surcharge is correct. However, no one or TPCA knows this mark, ie no one can say with certainty either the mark and thus the amount of the final surcharge. This means that the evaluation for the first half of the year does not indicate how the evaluation for the whole year will turn out.

  1. Is the solution of TPCA of 10.7.2020 the result of negotiations with OÚP?

No, the company’s management is still putting us in front of a finished thing and has not yet commented on our proposal (see below).

  1. How is the final wage policy (guaranteed bonus) calculated according to the wage policy?

At the end of the year, the following criteria will be evaluated for the whole of this year: number of accidents, number of car defects, production efficiency and reduction of direct positions. Based on this, a mark is calculated, from which it is then determined whether and in what amount you will receive the final surcharge, which also applies to this year. These are things that are determined by “hard” data. If they do not turn out well (which has already happened in the past), you will not receive anything or a small amount – few hundreds of crowns on the final surcharge.

  1. Why the OÚP fights against this proposal when employees receive a higher final surcharge, thus covering the now reduced payment of the Guaranteed Bonus?

For the above reasons. There is no guarantee that you will receive the final surcharge. This means that you do not even have to receive your 13th salary for the whole year, which is guaranteed by the “wage law”.

  1. What do you bothers about the solution communicated by TPCA?

According to this reaction, the payment of the first part of the guaranteed bonus would mean that the company must reduce the evaluation of indicators by non-production shifts. In other words, TPCA means that if you now receive the entire first part of the Guaranteed Bonus, it will artificially worsen the evaluation of the indicators, even if the company will do just as well.

The result of the evaluation (mark) is an objective variable that is not affected by the 13th salary – the opposite procedure is a violation of the “wage law”. Therefore, you must receive the final surcharge logically at the same amount, regardless of whether TPCA pays the first part of the Guaranteed Bonus in full or not.

  1. Has the OÚP proposed any solution that would be fair to both the company and the employees?

To put it simply, in the case of below-average results of the indicators, we want that the company respect the system of the Guaranteed Bonus as the 13th salary. I.e. that regardless of the mark of evaluation of KPIs, each employee gets to part what was not paid to him on the 1st payment of the Guaranteed Bonus.

In other words, you would not receive the full Guaranteed Bonus now, but you would always have to receive it on the final bonus. In our opinion, this is a compromise respecting the economic situation of TPCA, however, we do not yet know the official point of view of the company’s management. Without this guarantee, according to the following table, it may happen that you do not even receive the 13th salary, which the company guarantees you, which OÚP opposes. If you have been ready and willing to work all year, it is neither legally correct nor fair if you do not achieve this “guarantee”.

Example for position TM2 in case of evaluation of mark 4.49 (assumption of the company as a probable development)

 

Mark 4,49 / position TM2 Proposal TPCA Proposal OÚP
The amount of the 13th salary (Guaranteed Bonus): 26 500 Kč
1. part of bonus 8 731 Kč 8 731 Kč
2. part of bonus 13 250 Kč 13 250 Kč
Final surcharge 13 728 Kč  13 728 Kč
Total amount 35 709 Kč ( 9 209 Kč more than 13. salary) 35 709 Kč (9 209 Kč more than 13. salary)

 

It is clear, that in the case of the development referred to as assumed by the company itself, this option does not mean any additional costs for TPCA.

 

Example for position TM2 in case of evaluation of average mark (2.84)

 

Mark 2,84 / position TM2 Proposal TPCA Proposal OÚP
The amount of the 13th salary (Guaranteed Bonus): 26 500 Kč
1. part of bonus 8 731 Kč 8 731 Kč
2. part of bonus 13 250 Kč 13 250 Kč
Final surcharge 1 131 Kč 4 519 Kč (increase by 3 388 Kč as a guarantee of the 13th salary)
Total amount 23 112 Kč (3388 Kč less than 13. salary) 26 500 Kč (= 13. salary)

 

Example for position TM2 in case of evaluation of below-average mark (eg 2 and below)

 

Mark 2 and less / position TM2 Proposal TPCA Proposal OÚP
The amount of the 13th salary (Guaranteed Bonus): 26 500 Kč
1. part of bonus 8 731 Kč 8 731 Kč
2. part of bonus 13 250 Kč 13 250 Kč
Final surcharge 0 Kč 4 519 Kč (increase by 4 519 Kč as a guarantee of the 13th salary)
Total amount 21 981 Kč (4 519 Kč less than 13. salary) 26 500 Kč ((= 13. salary)
  1. How have the TPCA reacted to this so far?

The TPCA has not yet made any specific statement on whether it agrees with this compromise proposal or what comments it has. For this reason, we can not comment further on the reason for the company’s management, which leads it to do so.

  1. What can I do if I do not agree with the procedure of the TPCA?

The case is about unpaid wages, so it is possible to enforce it in court and also to apply other claims. We are open to give you more information on request – you are not obliged to unilaterally accept this approach of TPCA and to consider their progress in a painful manner, if they unilaterally dictate their conditions, in violation of the “wage law”.

  1. What will be the next steps of the CPC to remedy the situation?

 Of course, OÚP prefers an agreement with the company, which we repeatedly assure the company’s management. We will be happy to return to the negotiating table if the company’s management is willing to meet our needs and at least comment on our compromise proposal. Otherwise, however, the OÚP was forced, on the basis of consultation with its legal representatives, to initiate a legal solution to this situation, which will be further specified according to the further course of events.

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In case of any further questions or the need for further assistance, feel free to contact OÚP.

Regards
Petr Bíba, chairman