UPDATE 2-Czech unions threaten public sector strike

                                
 * Unions give PM one day to meet their demands
* Date and duration of stoppage still to be decided
  
 (Adds details and background on unions)
                                
 By Robert Mueller
                                
 PRAGUE, Nov 2 (Reuters) - Czech unions on Tuesday gave the
government one day to meet their demands to soften planned wage
cuts or see public sector workers called out on strike, a labour
leader said.
                                
 The centre-right government is seeking to cut the budget
deficit to 4.6 percent of gross domestic product next year from
a target of 5.3 percent this year, mostly by cuts in welfare
benefits and wages.
                                
 Jaroslav Zavadil, chairman of the Czech-Moravian Chamber of
Trade Unions, said unions opposed plans to cut the public sector
wage bill by 10 percent and abolish guaranteed wage rises for
public sector workers based on length of service.
                                
 "I believe it is almost 100 percent certain (that the public
sector strike will go ahead)," Zavadil told a news conference.
                                
 The Chamber estimates that over a third of public sector
workers are unionised, and its constituent unions represent the
bulk of them.
                                
 But it is hard to assess how many would back a strike, as
there is little recent history of public sector industrial
action.
                                
 Zavadil said the length of the stoppage would be decided
later and the strike would take place by the end of this year.
Union officials have said a strike could last anywhere between
one hour and two days.
                                
 He said a strike could be avoided if the government met
union demands on changes to pay structures, and gave Prime
Minister Petr Necas until Wednesday to find a compromise.
                                
 "Unless there is some movement tomorrow, the decision is
taken," he said.
                                
 So far, the government has declined to reconsider the pay
cuts, although it has offered concessions on pay structures.
                                
 The country of 10.5 million people employs more than 700,000
workers in the public sector, including government offices,
schools and healthcare.
                                
 About 40,000 public sector employees marched in protest
against the planned reforms in September.
                                
 The government plans to design the main part of the reforms,
affecting the pension and healthcare systems, throughout next
year.
                                
 Rating agencies have said successful implementation of the
reforms could lead to a rise in the Czech Republic's credit
ratings. It currently has an 'A1' rating from Moody's and an 'A'
with a positive outlook from Standard and Poor's.
 (Reporting by Robert Mueller; writing by Jan Lopatka; Editing
by Kevin Liffey)