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Electronics Production | March 23, 2010

30% electronics production in the Czech Republic

According to a report, the electronics industry accounts for about 30% of total foreign investments in the Czech Republic.
Of electronics industry exports, 92% goes to the European market, indicating that low cost production facilities have been established in the Czech Republic to serve Europe as the end-market.

The salaries of the production workers with contracts for an unlimited period of time are equivalent to those earned in similar positions in other, comparable companies and in some cases even higher, according to a recent report provided by Make it Fair.

According to the Make it Fair report, the working conditions of people employed by agencies are in many cases alarming. These workers often come from abroad (Ukraine, Vietnam, Mongolia, Belarus). Agencies hiring temporary workers have to apply for a license at the Ministry of Labor and Social Affairs.

Legislation on agency employment, designed to clarify legal relationships and to provide better protection for temporary workers, came into effect in 2004. In reality, however the Make it Fair report stated, foreign workers find themselves in an extremely vulnerable position.

The new law states that a worker can acquire a visa connected to a concrete position only. If a contract is terminated, the agency will report to the Labor Office, which will ultimately result in the cancellation of the residence permit. If the worker does not find a new job soon, he or she becomes an illegal immigrant.

Some agencies even arrange for people to become illegal immigrants on purpose, in order to offer them another job under inferior conditions. Recent findings also discovered a large people trafficking network, maintained by the bribes paid to Czech officials in the Czech embassies – mostly in Hanoi, Ulaanbaatar and Kiev, according to the Make it Fair report.

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