Czech unions want 7 pct wage rise for 2007

PRAGUE, Oct 13 (Reuters) - Czech labour unions will demand a wage rise of at least 7 percent for 2007, the head of the country's biggest union grouping CMKOS said on Friday.

Milan Stech said such a nominal wage rise would imply around 4 percent real wage growth with inflation running at 3-3.5 percent.

"Seven percent is the minimum boundary we should not go under," Stech told a news conference.

The Czech central bank forecasts inflation at 2.8-4.2 percent in mid-2007 and 3.8 to 4.7 percent at the year-end.

"To a certain extent it helps us that a shortage and demand is appearing for qualified workers, both in highly education-demanding professions and in craft professions," Stech added.

Czech unemployment has been falling and household spending rising amid record economic growth of over 6 percent and growing purchasing power.

The unemployment rate dropped to 7.8 percent in September from 8.8 percent a year ago.

Collective wage agreements cover about 30 to 40 percent of all labour contracts.

In the second quarter, Czech real wages grew by 3.9 percent year-on-year after a 4 percent rise in the previous quarter.

Union leaders are due to meet central bank chiefs to exchange their views on the economy on Monday. ((Reporting by Jan Korselt, editing by Ian Jones; prague.newsroom@reuters.com; Reuters Messaging: jan.lopatka.reuters.com@reuters.net; +420-224 190 474))

Keywords: ECONOMY CZECH WAGES