Poland’s ruling party pledges to double minimum wage and end country’s ‘post-colonial’ reputation as a source of ‘cheap labour’

Poland's ruling party pledges to double minimum wage and end country's 'post-colonial' reputation as a source of 'cheap labour'

But experts point out that Poland is already moving away from the low-labour-cost economy that attracted much of the foreign investment into the country over the past 20 years.
In the past Poland had an abundance of cheap workers owing to high unemployment rates and that made it easy for large manufacturers to investment.
“But this is now changing,” Piotr Arak, director of the Polish Economic Institute, a Warsaw-based think-tank, told The Telegraph. 
“You have demographics. Poland is getting older. This means wages are going to increase. In one or two or years we are going to surpass countries like Spain in terms of the average wage, and the average worker is going to earn more and more. The time of cheap employees in Central and Eastern Europe is ending.”
The government’s plans to force the pace of change, however, have raised concerns amongst employers. 
Lewiatan, a business lobby group, says the increases in the minimum wage could trigger inflation and lead to higher costs as the new wage levels hit the economy. As a result, it claims, company costs could jump by 16 per cent.

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