Electronics Production | April 29, 2008
Flextronics Hungary to modernize equipment to meet shortage of workers in Eastern Europe
Companies that invested in Eastern Europe feel that the fast growth in these countries drives up wages and opens borders to encourage emigration. EMS provider Flextronics is trying to substitute technology for its employees at the plant in Hungary by modernizing its assembly lines.
As the wages grow in these countries and open borders encourage emigration, some businesses rely more on automation, while others look for employees abroad or even quit the region. Flextronics is one of Hungary's top 10 employers. The company is trying to substitute technology for workers by modernizing its assembly lines. Peter Papp, human-resources chief for Flextronics Hungarian unit said `We have to come up with something under this twin pressure'' of higher costs and scarcer labour, therefore the company is investing in new equipment.