Friday, 3 September 2010

News from Poland

Business

Asian workforce growing in Poland

09.03.2010 12:35

Last year companies in Poland hired a record number of employees from China, Vietnam and India.  

 

The Labour Ministry issued 29,000 work permits in 2009, 60 percent more than in 2008. The majority of foreigners employed in Poland are Asians, mainly Chinese, Vietnamese, Indian and Nepalese. They usually work in industry, building, services and finance sectors. Most find employment in the central region of Mazovia, the northern region of Pomerania and southern region of Malopolska.  

 

The rise in foreign investment, especially in the finance sector, IT outsourcing and building industry have brought skilled, but cheap, labour to Poland. Highly-skilled construction workers from Asia -  welders, carpenters, excavator operators and scaffolding fitters - are being employed at the EURO 2012 building sites.  

 

Although it costs from 600 zloty (155 euro) to 5,500 zloty (1,400 euro) a month to fetch a worker from Asia, it is still profitable because Asian employees get minimum salaries of 1,300 zloty (335 euro) and Chinese construction companies are usually subsidized by the Chinese government. 

 

“The employment of Asian workers is a rather risky business because they usually work in Poland only for a month or two and as soon as they find a better offer in Scandinavia or Germany, they immediately quit and leave,” says Marta Zieba-Szklarska from Alter FM Partners, company which employs workers from Nepal.  

 

The liberalization of regulations on hiring foreigners has also contributed to the increase of Asian workforce in Poland. A fee for issuing a work permit decreased from 900 zloty (230 euro) to 100 zloty (26 euro), employment procedures were shortened and the time of employment lengthened to three or even five years. (mg/pg) 

 

Source: Gazeta Prawna



Comments: 15 Add new comment
C. Blazejczyk, USA
09/03/2010 16:11:10
If Chinese construction companies are being subsidized by the Chinese government, that's really not healthy for the global market. It's anti-competitive, and the Polish government might be wise to apply a tariff equivalent to the subsidy on each imported worker. The tariff would then help balance out any unfair advantage created by the Chinese government. Just a thought.
C. Blazejczyk
09/03/2010 16:35:54
Haha! Are you sure, dunder? Well, of course I know it happens all the time, but it's still a problem for local businesses which can't compete against subsidized foreign businesses. Same concern applies here in the States.
Maciej Skiba
09/03/2010 17:16:49
I completely agree with you C.Blazejczyk
C. Blazejczyk
09/03/2010 17:27:28
Odd, I was responding to a comment, then the comment I was responding to disappeared...
RHW
09/03/2010 17:52:05
There is 13% unemployment in Poland among general population and 25% unemployment among people younger than 25 y.o. But Polish goverment prefers to import Asians to fill dvindling vacancies.Are they idiots?!
Pioro
09/03/2010 19:31:12
No RHW the idiots are the young people who expect too much and think it is 'beneath' them to take such a job.
Maciej Skiba
09/03/2010 19:34:33
That's not entirely accurate Pioro, though there is some truth to what you say (probably), its not an even playing field if Chinese company's are being subsidized.
Maciej Skiba
09/03/2010 19:50:13
If Chinese companies are being subsidized, it means they can offer a lower bid than Polish companies. Hence all other things being equal (such as quality), they will always win the bid. So if Polish companies can't win the bid, it doesn't matter if Polish workers want to work such jobs or not (which I'm sure they would take), because there is no jobs to want in the first place.

The only solution would be for Polish companies is to lower their labor costs (seeing as lowering the cost of supplies and materials is a lot harder to achieve). If lowering those wages to such a small amount that doesn't cover the Poles opportunity costs (meaning money they can be making doing something else) than there is no incentive for Poles to take those jobs.
prospective employee
09/03/2010 19:53:28
To be an idiot is it necessary requirement to apply for a job in Poland?
Maciej Skiba
09/03/2010 20:01:10
Cont. Or even if the wages need to be lowered to such an extreme (to win that contract) that it makes more economic sense for Poles to collect unemployment checks. Though I hope people would have the moral fiber to use unemployment checks only as an end result, we both know majority of people don't operate like that. How many people would take less money and have to work than get more money and sit at home? People like that are too few and far between.
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