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Poles paid more by British company to make them stay in their own country
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24 October 2007
DSR Print Management feared its staff might join the exodus of Poles seeking better pay in the UK.
An estimated one million Poles have moved to Britain since the EU expanded in 2004 and around half say they plan to stay.
Poles can earn six times as much in the UK. At home the average monthly salary is £316, compared to just over £2,000 in the UK.
But the exodus is creating a huge skills vacuum in their own country. Now those UK firms who launched operations in Eastern Europe to take advantage of lower overheads are among those suffering from the manpower shortage.
Analysts say the move by Northampton-based DSR could be followed by other international companies with a presence in Poland and other former Soviet bloc countries.
Mike Naylor, DSR's managing director, said the firm's Polish workers had been given pay rises of at least 50 per cent, with some having their salaries doubled.
So far the policy seems to be working as none has left to seek a better deal in the UK.
Mr Naylor said: "We are paying our staff a premium rate. They are now exceptionally well paid by Polish standards."
He added: "Eastern Europe is a very big market, but it is in its infancy.
"Setting up operations in Poland and other countries is not just about taking advantage of lower costs in the short term.
We want to utilise their skilled labour and we won't be able to do that if they have all moved to the UK."
DSR, which operates in 20 countries in Europe, is also encouraging its Polish suppliers to charge more for their products so they can offer similar incentives to stop their staff leaving for the UK.
Mr Naylor said: "Over the next few years we predict that white collar workers are going to move to the UK in great numbers. We have already seen this with blue collar workers.
"This is a trend that businesses can help to reverse if they invest in the future."
The printing company, whose client list includes MFI, French Connection and Defra, has a turnover of around £50million a year.
It has a total of 180 staff, with five working in its Warsaw operation.
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