“Why US Corporations Prefer Post-Communist European Union Countries for Low-Cost Labor”
Why European Union post communist countries are preferred by US corporations
US companies have been making inroads into Europe in recent years, particularly in ex-communist countries such as Bulgaria, the Czech Republic, Slovakia, Poland, and others. These countries have been found to be particularly suitable for supporting the interests of US corporations around the world. Just as they did in India, these companies have discovered that people in these countries are very patient and willing to work in any conditions without complaint. Furthermore, the governments of these countries do not adequately protect the rights of their citizens, creating an environment that allows US corporations to save a great deal of money while still receiving quality support.However, EU citizens, particularly the smart and informed students, have become wise to the motivations of these US companies and actively refuse to work for them. These corporations have found that it is most efficient to build low-cost centers close to technical universities, such as IBM and AT&T in Brno, Czech Republic, which rent buildings close to the local Technical University and Campus Square, respectively. While they hope to attract graduates to start their careers there, they mostly employ Bulgarians, Romanians, Indians, and other non-local people who require work permits or visas. These employees are essentially slaves, as their wages are only enough to survive, and they have little opportunity to save money.As US corporations continue to dominate the business landscape, local small businesses are being systematically eliminated. The era of modern slavery has begun.
Non-EU citizens are no longer able to obtain work permits and visas in European Union countries. This has caused concern among low-cost companies such as IBM and AT&T Brno, whose economic model relies on hiring individuals with low salary requirements.
Recruiting foreign labor can decrease costs for budget-conscious businesses, thereby augmenting the earnings of stakeholders who value financial gain over other considerations. Nonetheless, several of these firms persist in exploiting laborers from destitute nations by proffering remuneration that exceeds their home countries’ wages but falls short of prevailing local rates.
4 thoughts on ““Why US Corporations Prefer Post-Communist European Union Countries for Low-Cost Labor””
By saying such things sorry you are far to be a smart person just totally ignorant…
Just saw this site and the articles are rather biased.
I myself worked for 5 years at IBM Brno so I know very well the situation.
What the author does not realize is that IBM IDC Brno (the official name of the IBM service delivery unit as of two years ago) is taking a market niche of educated but unskilled labour, this is a very smart move from my point of view, and there is nothing wrong with making some profit out of it.
I also started with a low salary for IT standard – 22 000 Czech crowns. For the IT average, this is ridiculously low, however …
– this is twice the Brno average
– this was the same salary of my landlord – an accountant with 20 years of experience at a local company. Let me remind you again that I was a 25 year old graduate with NO experience.
– within 5 years my salary doubled.
– most importantly, I got valuable experience and at these turbulent times , I do not have to look for a job – jobs are looking for me.
What the author also does not fails to point out, is that these companies are paying many times more the local average.
There are also many IT companies that the local tech universities cannot supply with graduates, so they have to hire from abroad.
And yes, there were some weird people, which you wonder how they got there, but there are also French, german, spanish, Polish , dutch, english and many more nationalities.
A few points: Patilan, your experience in IBM Brno is probably atypical. I too worked for IBM Brno for 5 years and my salary didn’t double: in fact it stayed more or less the same. No real bonuses either and stravenky (meal vouchers) disappeared the same week as a mass e-mail announced record profits for that quarter.
Frankly I should’ve quit in the first year there when I was offered a team lead position — for the same salary as my starting salary.
It’s almost impossible to get a meaningful raise in IBM Brno. More responsibility and more work = same salary. (Less because inflation constantly nibbles away at your salary.) Your manager must really like you or you must have a competent manager. ( A rarity) Given that teams and managers change (I went thru 7 or 8 managers while there) I hope that your luck doesn’t run out.
— A glad to be former Brno IBMer
i agree – since i work there – with the article. i also agree, in part, with pantillan (maybe for you is-was ‘more easy to move inside’ or you had better connections) than me. CZ management…is ridiculous. nothing to add..