The Indian subsidiary of the world’s fourth-largest IT services provider, the $16.7-billion Computer Science Corporation (CSC), is under scanner for allegedly exploiting Indian IT professionals sent onsite to Denmark.
Source: EconomicTimes

The accusation comes from a local IT workers’ union, which claims CSC is paying Indian IT professionals in Denmark salaries lower than the minimum stipulated by law.

PROSA — a Danish trade union for IT professionals — raised the issue last month when an Indian IT professional on deputation in Denmark, protested about not being paid the salary promised by CSC. The issue is creating headlines in the Nordic country, which has about 65,000 IT professionals.

According to papers filed by PROSA with Danish investigating authorities, CSC pays Indian IT professionals between 5,000 and 8,000 Danish Kroner (DKK) a month — roughly equal to what the Indian IT workers would get, working in Noida or Hyderabad. (One DKK is equal to Rs 8).

But Danish law states that foreigners must earn at least 31,250 DKK monthly to enter the country through the so-called salary amount rule, which is part of the Aliens Act. “Danish law requires companies to pay foreign IT workers in Denmark a minimum wage of 31,250 DKK, which is roughly equal to Rs 2.5 lakh per month, to enter the country. We believe more such IT companies are involved in exploiting Indian IT workers onsite,” said Hanne Lykke Jespersen, union secretary, PROSA. “The Danish government has already launched an investigation into this matter,” she added.

To give a comparison between the cost of living in Denmark and India, a McDonald’s Big Mac (called Maharaja Mac here) costs $1.5 (Rs 69) in New Delhi. The same Big Mac costs about $5.7 (Rs 250) in Copenhagen. In another comparison, per capita income in Denmark is about $3,000 per month. In contrast, Indian IT workers are often paid even lower, at about $1454 per month (equating with 8,000 DKK per month), going by PROSA’s claims.
Source: EconomicTimes