By December 2008, the global economic crisis had taken hold in the Czech Republic by primarily affecting foreign workers, who are generally the first people to be let go by companies; the impact on migrant workers in the automobile industry has been particularly severe. When these workers are given notice, their work permit is terminated along with any opportunity to stay longer in the Czech Republic. However, many of the workers got into debt in their own country so that they could acquire money to travel to the Czech Republic and be able to pay various ‘intermediaries’. As a result, they have neither money nor a work permit.
In 2007, the Czech Republic experienced a labour shortage. Consequently, a number of companies began hiring foreign workers through employment agencies, particularly workers from Bulgaria, Romania and Ukraine, as well as from Mongolia and Vietnam. Now, due to the global economic crisis, companies are beginning to lay off these workers first. However, they often do not want to or cannot go home, and find themselves in a difficult situation.
High job loss among migrant workers
By December 2008, the global economic crisis had taken hold in the Czech Republic by primarily affecting foreign workers, who are generally the first people to be let go by companies; the impact on migrant workers in the automobile industry has been particularly severe. When these workers are given notice, their work permit is terminated along with any opportunity to stay longer in the Czech Republic. However, many of the workers got into debt in their own country so that they could acquire money to travel to the Czech Republic and be able to pay various ‘intermediaries’. As a result, they have neither money nor a work permit.
Moreover, it will be very difficult for these migrant workers to find new formal employment, partly because of the general economic slowdown and partly due to the language barrier and their lack of qualifications. Many of the workers have come from Bulgaria, Romania and Ukraine, as well as from Mongolia and Vietnam. The companies for whom these labourers worked and the employment agencies that brought them to the Czech Republic during the labour shortage experienced in 2007 are no longer looking after them. Redundant foreign workers thus find themselves in a difficult situation and some may have to resort to undeclared work.
Lack of support
Towns and municipalities in industrial zones, particularly the cities of Plzeň in south Bohemia and Mladá Boleslav in middle Bohemia, are experiencing the biggest problems concerning redundant foreign workers. For instance, an advice bureau for foreigners and refugees run by a diocesan charity in Plzeň can no longer handle the deluge of homeless immigrants. In Plzeň, apart from the charity, there was no point of contact where foreigners experiencing difficulties could go.
Plzeň was thus the first place where a special hostel for unemployed foreign workers was opened in the Czech Republic. So far, it is being used by 20 foreign agency workers who lost their jobs in the manufacturing company Borgers, which produces textiles for the automobile industry and which was forced to let people go because of a drop in orders for Škoda’s Mladá Boleslav plant. This hostel was opened by the První Pracovní employment agency together with the Edymax agency.
Furthermore, in Mladá Boleslav, a meeting has been held between town hall representatives, the police, representatives of the Ministry of the Interior of the Czech Republic (Ministerstvo vnitra České republiky, MVČR) and employment agencies regarding these unemployment problems. Similar discussions have also taken place in Plzeň.
Trade unions have made no comment on the situation since the workers are agency workers and are not trade union members.
Possible solutions
A spokesperson from the organisation People in Need (Člověk v tísni, ČvT), Markéta Kadlecová, has proposed that redundant foreign workers should be allowed one month to find new work. This is not likely, however, in the case of poorly qualified labourers. The difficulties that foreigners are experiencing could be prevented by more responsible behaviour on the part of employers. A spokesperson from Grafton Recruitment, Luboš Rejchrt, states: ‘They should be responsible and if they are going to look for people so far afield, they shouldn’t let them go after three months. For example, we do not enter into contracts for less than a year. But there are plenty of profiteers who bring Vietnamese here and then just use them for work in fits and starts.’
In Mladá Boleslav, efforts are being made to find a way to pay travel costs for foreigners who have lost their jobs and want to return to their country of origin but who do not have the money to pay for a flight. The Mayor of Mladá Boleslav, Radovan Nwelati, believes that the state should cover these costs.
The Czech government finally decided to support foreign workers by offering financial help, providing air tickets to the place of origin and €500.
Soňa Veverková, Research Institute for Labour and Social Affairs (RILSA)
Eurofound recommends citing this publication in the following way.
Eurofound (2009), Foreign workers most vulnerable during economic crisis, article.
