Danish union PROSA says abuse of Indian IT workers must stop
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A wage far below the Danish minimum wage, a life of board and lodging and being tied to the workplace with the threat of repatriation should silence any criticism. That is the reality of Indian IT professionals in Denmark's second largest IT company CSC, as with the Immigration Agency's endorsement they are working in unbearable conditions in Denmark. That was documented on a spots in the radio program “P1 Orientation” on Monday evening.
The Association of IT professionals, PROSA, are strongly opposed to the inhuman treatment:
"PROSA requires effective controls and sanctions, to ensure that employers cannot just cheat Danish and Indian workers," says Hanne Lykke Jespersen, Union secretary in PROSA - Association of IT professionals.
Over the past three years CSC has brought about 900 Indians to Denmark. They have work and residence permits through the so-called salary amount rule, which states that they must be paid at least 375’000 DKR (50’000 EUR) a year. But because of a bilateral tax agreement between India and Denmark, Indians do not pay tax in Denmark and CSC has paid them much less than this amount. CSC has stated their salary to the Immigration Service with the tax amount added to the actually paid wages and thereby reaches the required 375’000 (50’000 EUR) DKR a year. Immigration Service, according to CSC, is informed about this and has allegedly endorsed this arrangement.
“Immigration Service has either by mistake or open eyed assisted employers to cheat Indian IT professionals, since they appear to have approved this tax circus both in the CSC and in several other Danish companies," says Hanne Lykke Jespersen.
Slave-like
The Indian IT professionals are paid their Indian salary and a fixed residence in Denmark, which CSC claims is priced to 11-12’000 DKR monthly. As part of their contract with CSC India they have signed a clause, which means that if they leave CSC within two years after they have returned to India, they must pay a penalty of 300’000 rupees - approx. 35’000 DKR – a very substantial amount for Indian IT professionals who earn 3-5’000 DKR per month.
PROSA has had contact with one of the Indian employees. According to his contract he is supposed to be paid an amount of 550 DKR per day (per diem) in Denmark - ie 16’500 DKR monthly. But he was actually paid little more than half that amount, 285 DKR per day.
“When he complained about this, CSC immediately changed his flight ticket and before he could spell the word 'rights’, he was sent back to India. He was angry about the treatment and terminated his employment. Now he is under financial pressure because of the penalty he must pay in India and because his so-called "leave papers” are being withheld before he has waived all claims against CSC Denmark. Without leave papers he is prevented from getting another job. It's slave-like," says Hanne Lykke Jespersen.
Low balling Danish labor
This underpayment of Indians is ongoing, while 4% of the Danish IT professionals in PROSA are out of work and receiving unemployment benefits. And at the same time a number of Danish IT professionals employed by CSC are waiting to be assigned work while CSC is considering whether they should be fired or jobs can be found for them.
"In this way the Danish IT manpower is low balled. That means more unemployed IT professionals. For the Danish society, it is a bad business," says Hanne Lykke Jespersen.
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For further information contact:
Hanne Lykke Jespersen, Union secretary in PROSA - Association of IT Professionals
Tel. 0045 2888 1247
Contact via mail: hlj@prosa.dk
PROSA - Association of IT professionals organize more than 12’000 employees in the IT sector. More information on www.prosa.dk