Europe’s Thirst for Cheap Labor Fuels a Boom in Disposable Workers
Europe’s Thirst for Cheap Labor Fuels a Boom in Disposable Workers
Panasonic said that it relied on agencies like Xawax to recruit workers amid a tight labor market and that both parties complied with Czech labor law.
Jan Hendrych, the chief executive of Wincott People Group, one of Eastern Europe’s largest employment agencies, which acquired Xawax
this year, said his company followed the labor laws of all countries where it hired workers and was unaware of such practices.
In a statement, Foxconn Technology Group said it and the agencies
that recruited on its behalf had ensured workers received wages and benefits above the Czech Republic’s basic requirements.
But if an internal inquiry showed Xawax had engaged in them, he said, “that kind of behavior is obviously unethical at the very least, and must be stopped.” He added
that Wincott had worked with the Czech government on measures to clean up irregular agency practices, which would help attract workers.
In a statement, the company added that migrant workers, who hold agency contracts,
did not work beyond the legal workweek and were paid above the Czech minimum wage.
Employment agencies like Xawax, which finds workers for the Foxconn and Panasonic factories, are an important conduit.
Panasonic said that it relied on agencies like Xawax to recruit workers amid a tight labor market and that both parties complied with Czech labor law.
Jan Hendrych, the chief executive of Wincott People Group, one of Eastern Europe’s largest employment agencies, which acquired Xawax
this year, said his company followed the labor laws of all countries where it hired workers and was unaware of such practices.
In a statement, Foxconn Technology Group said it and the agencies
that recruited on its behalf had ensured workers received wages and benefits above the Czech Republic’s basic requirements.
But if an internal inquiry showed Xawax had engaged in them, he said, “that kind of behavior is obviously unethical at the very least, and must be stopped.” He added
that Wincott had worked with the Czech government on measures to clean up irregular agency practices, which would help attract workers.
In a statement, the company added that migrant workers, who hold agency contracts,
did not work beyond the legal workweek and were paid above the Czech minimum wage.
Employment agencies like Xawax, which finds workers for the Foxconn and Panasonic factories, are an important conduit.