2.2 Initiative of EC on EFP – The PEPPER Reports, 2.2.2 Results in the Czech Republic. Stagnation.

The Czech Republic is the country whose privatisation policy has granted by far the fewest concessions to insiders. Despite some tradition of both financial participation of employees and employee participation in decision-making, the Czech privatisation framework did not include any special price reductions, credit arrangements, or pre-emptive rights for employees. Czech policy opted for the voucher concept, with no specific and enterprise structures. It was—and in general it remains—unfavourable to employee participation. Under voucher privatisation, only about 1.5% of the total shares privatised were allocated to employees. Currently, profit–sharing plans are rare, and those which exist are mostly found in foreign-owned companies. Of the existing, rather restrictive, regulation on employee share ownership and (share-based) profit–sharing, only the former have been implemented, but just to a very limited extent.

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