Robots are Replacing Workers in Poland Due to Raise in Minimum wage.
It is quite unfortunate that despite all the evidence showing how disastrous minimum wage rules are, more and more governments are implementing these laws. All around the country, states that have implemented minimum wage hikes have seen employers go out of business, or fire workers.
These results are not exclusive to the United States, however. Same effects are being seen in Central Poland, where plans are in place to double the 2019 minimum wage by 2023. As workers are becoming more expensive, Polish firms are investing in technology in order to remain competitive.
At Kon-Plast, the factory at Stare Miasto near Konin in central Poland where the Kaminski family produces plastic containers, a newly purchased printing machine will replace two staff members on each of four teams that work shifts.
Even though Kon-Plast does not intend to lay off workers, automation will render growth in labor demand unnecessary for the foreseeable future. Other firms are also pursuing other cost saving measures, that will be detrimental to labor.
A recent study by human resources firm Randstad showed around a quarter of Polish companies employing staff on the minimum wage expect to put recruitment on hold from January, while just under a fifth are set to cut staff.
Negative effects of minimum wage hikes cannot be ignored. Businesses do not have an infinite pool of money to cover their operating costs. Moreover, employers are not evil powerful forces purely set on exploiting workers.
Wages in the labor market are a result of demand and supply. And it is illogical to expect businesses to continue to hire workers when the cost of hiring goes up.