Europe’s Thirst for Cheap Labor Fuels a Boom in Disposable Workers<br />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.<br />Jan Hendrych, the chief executive of Wincott People Group, one of Eastern Europe’s largest employment agencies, which acquired Xawax<br />this year, said his company followed the labor laws of all countries where it hired workers and was unaware of such practices.<br />In a statement, Foxconn Technology Group said it and the agencies<br />that recruited on its behalf had ensured workers received wages and benefits above the Czech Republic’s basic requirements.<br />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<br />that Wincott had worked with the Czech government on measures to clean up irregular agency practices, which would help attract workers.<br />In a statement, the company added that migrant workers, who hold agency contracts,<br />did not work beyond the legal workweek and were paid above the Czech minimum wage.<br />Employment agencies like Xawax, which finds workers for the Foxconn and Panasonic factories, are an important conduit.
