2015 Annual Review of Labour Relations and Social Dialogue Czech Republic SONA VEVERKOVA and PETER WEGENSCHIMMEL March 2016  In general the Czech economy showed significant growth in 2015 that was evenly distributed among all activities in the economy.  After the tense relationship between trade unions and the right-wing government of Petr Nečas(ODS) from 2010 to 2013, social dialogue has improved rapidly under the new centre­left government of Bohuslav Sobotka(ČSSD) formed in January 2014. According to the President of the Czech-Moravian Confederation of the Czech Republic( ČMKOS ), Josef Středula, the relationship between trade unions and the government are currently the best in 25 years.  In 2015, the government announced the Year of Industry and Technical Education. ČMKOS decided to support the events with their own one­year“The End of Cheap Labour” campaign which was introduced in June 2015. ČMKOS demanded that industry create more high-pro­file positions and recommended that the unions should demand a 5 per cent pay increase in collective bargaining.  At the end of the year, ČMKOS announced a new program declaring their Vision of the Eco­nomic Strategy Change in the Czech Republic.  As the confederation states in a new analysis, industry requires an increase in labour produc­tivity that would allow a reduction in working hours(which are among the highest within the European Union). In addition, the programme insists on a one to two per cent increase in taxation of corporate profits and introduction of progressive income taxes(income taxes in Czech Republic are levied at a flat rate of 15% on gross income). The long-term vision of ČMKOS includes an improvement in economic competitiveness based on no more cheap labour but on new professional occupations.