Brexit Flight to Shift 30,000 Jobs to Poland, Minister Says
by and- Government spoke to 30 companies about moving jobs to Poland
- JPMorgan said to mull relocating 2,500 jobs to central Europe
Poland will attract as many as 30,000 British jobs to its business-service sector this year, its government said, as the biggest eastern European Union member tries to lure companies considering leaving the U.K. after it voted to depart from the bloc.
Following the outflow of more than a million Poles to Britain and other western European countries since the country gained EU membership in 2004, the government in Warsaw is trying to bring them back. Part of that is a multi-year, 1 trillion-zloty ($245 billion) plan to make the economy more innovative and rely on domestic capital rather than investment from abroad, deputy Prime Minister Mateusz Morawiecki said Monday. Poland spoke with more than 30 financial and other companies last year over moving parts of their workforce from the U.K. after Brexit, he said.
“Poles were moving to London, now companies from London are relocating their workplaces to Poland,” Morawiecki told a news conference in Warsaw. The government has received information on plans of “several dozen” investments, including “big ones.”
Poland and other EU nations are jostling for position as Prime Minister Theresa May prepares to trigger the process that will take Britain out of the bloc. While Frankfurt and Paris are vying to coax big banks and their euro clearing operations away from London, lower-wage countries in central and Eastern Europe are wooing companies to resettle their back-office and other operations in the region’s booming shared service centers.
The report said that “several years ago” a financial director at a medium-size Polish company earned 30 to 40 percent less than in Britain, while an accountant earned between a third and half of a Briton’s salary. Now the differences are smaller, it said.
Brexit has already helped staunch the flow of workers leaving Poland for fellow EU members in the richer West. The number now considering moving abroad dropped a third after the U.K.’s June referendum, according to a September poll by Work Service SA, a recruiting and human resources company.
Unemployment in the Baltic Sea country of 38 million people bordering Germany, Ukraine and Russia’s Kaliningrad ex-clave among others, has fallen to a record-low 8.3 percent. In the 2017 Bloomberg Innovation Index, which measures and ranks countries and sovereigns’ overall innovation capacity, Poland moved up one spot from last year to 22nd among 78 nations.
That has helped Poland lead the region in attracting service-center jobs, with the number rising to 212,000 last year and on track to hit 300,000 in 2020, according to a report by the Association of Business Service Leaders. Among the bigger names are International Business Machines Corp and Cisco Systems Inc, both of which have large offices in the city of Krakow.
JPMorgan Chase & Co. may move as many as 2,500 jobs to central Europe, Warsaw-based Puls Biznesu reported Monday. The bank is considering creating back-office positions in Poland as part of a plan to continue to look for alternative places for operations, according to a person with knowledge of the discussions.
“We are always reviewing our options to improve our real estate strategy for back office functions. Any such review has nothing to do with London jobs or Brexit,” Jennifer Zuccarelli, a spokeswoman for JPMorgan, said by phone.
Magda Lau, the Development Ministry’s spokeswoman, declined to confirm Morawiecki’s comment has anything to do with the plan of JPMorgan.
Following the outflow of more than a million Poles to Britain and other western European countries since the country gained EU membership in 2004, the government in Warsaw is trying to bring them back. Part of that is a multi-year, 1 trillion-zloty ($245 billion) plan to make the economy more innovative and rely on domestic capital rather than investment from abroad, deputy Prime Minister Mateusz Morawiecki said Monday. Poland spoke with more than 30 financial and other companies last year over moving parts of their workforce from the U.K. after Brexit, he said.
“Poles were moving to London, now companies from London are relocating their workplaces to Poland,” Morawiecki told a news conference in Warsaw. The government has received information on plans of “several dozen” investments, including “big ones.”
Poland and other EU nations are jostling for position as Prime Minister Theresa May prepares to trigger the process that will take Britain out of the bloc. While Frankfurt and Paris are vying to coax big banks and their euro clearing operations away from London, lower-wage countries in central and Eastern Europe are wooing companies to resettle their back-office and other operations in the region’s booming shared service centers.
Poland Ready
The average salary in Poland’s financial and accounting industry amounted to about 104,000 zloty ($25,500) a year, according to the 2015 Antal Salary Report. A recruitment survey by Goldman Sachs Group Inc., also from 2015, said that banking salary levels were “flattening out” between eastern and western Europe.The report said that “several years ago” a financial director at a medium-size Polish company earned 30 to 40 percent less than in Britain, while an accountant earned between a third and half of a Briton’s salary. Now the differences are smaller, it said.
Brexit has already helped staunch the flow of workers leaving Poland for fellow EU members in the richer West. The number now considering moving abroad dropped a third after the U.K.’s June referendum, according to a September poll by Work Service SA, a recruiting and human resources company.
Unemployment in the Baltic Sea country of 38 million people bordering Germany, Ukraine and Russia’s Kaliningrad ex-clave among others, has fallen to a record-low 8.3 percent. In the 2017 Bloomberg Innovation Index, which measures and ranks countries and sovereigns’ overall innovation capacity, Poland moved up one spot from last year to 22nd among 78 nations.
Financial Services
In financial services, UBS AG has one of its two global hubs in Krakow. Goldman Sachs, which is planning to cut its London staff in half to 3,000 workers, will expand its Warsaw office to “several hundred” people over the next three years, Handelsblatt reported this month.JPMorgan Chase & Co. may move as many as 2,500 jobs to central Europe, Warsaw-based Puls Biznesu reported Monday. The bank is considering creating back-office positions in Poland as part of a plan to continue to look for alternative places for operations, according to a person with knowledge of the discussions.
“We are always reviewing our options to improve our real estate strategy for back office functions. Any such review has nothing to do with London jobs or Brexit,” Jennifer Zuccarelli, a spokeswoman for JPMorgan, said by phone.
Magda Lau, the Development Ministry’s spokeswoman, declined to confirm Morawiecki’s comment has anything to do with the plan of JPMorgan.
40 Comments
Yvette Cardozo
Boise, ID 1 day agoLillybelle
NYC 23 hours agoCarol Gabrenya
Cleveland, Ohio November 29, 2016Stephanie
Dunkirk, NY November 2, 2016William Evans
New York, NY November 2, 2016thisdell
London (ex-LA) November 1, 2016Two - those of us who do it in silence are, of course, listening carefully. I don't know if it's the Music of the Spheres, or just our bodies or the tyres on the road, but that's all powerful frame-of-mind music.
Now we need to ask: does music over loudspeakers in the gym help people stay in focus, or does it just piss people off and drive them away unless, by some wild chance, it happens to be music they like?
Marc
Montreal October 28, 2016mj
nj October 28, 2016Fadda Mush aka djMush1 (WNYU)
Flatbush October 28, 2016Bounty Killer
Simpleton
Merciless
David Alger
Florida October 28, 2016Ziad
New York October 28, 2016flyoverland resident
kcmo October 28, 2016what you clearly see as benefit is simply what almost all americans who work out seem to crave; distraction and dissociation. and music helps mask the very temporary pain and discomfort of exercising harder than than than they want to. I dont even use music when I run. its far more fun to me to enjoy being outside, watching where I step, gauging my breathing and generally assessing how I feel. and dont get me started on the safety aspect of no noise or silly screen to be staring at especially for women.
when I'm done most of the time I'm whacked for a solid 30-45 minutes. at my age I need the recovery time. but I can still handle the short term pain and discomfort (the good kind not injury-related). its not like it lasts that long and I can delay gratification at least for a while unlike more and more people cant anymore. it kinda goes back to personal will and character issues to me. music is for the treadmill aerobics people for whom that type of monotonous workout may require aural anesthetics.
Ramon Reiser
Seattle 1 day agoHal
Dallas October 28, 2016Jose E. Romero
Guadalajara October 28, 2016Anthony Cornicello
West Hartford CT October 28, 2016It doesn't work so well with longer, freer kind of tracks, or minimalist music (Reich or Adams) Some of those sessions never quite reach their 'goal' point, and that gets reflected in the run as well.
Yes, I know for everyone one of us, it will be a different list. But it's all quite interesting when you think about it.
Tadcaster
Chicago October 28, 2016Kimberly
Chicago, IL October 28, 2016Paul Parish
berkeley, CA October 28, 2016KintamaniJohn
Santa Barbara October 28, 2016Thomas Busse
San Francisco October 27, 2016AAC
Austin October 28, 2016David
Chicago, IL October 27, 2016Ramon Reiser
Seattle 1 day agoJaime L.
NY October 27, 2016Jake Larsen
Salt Lake City, Utah October 27, 2016Ron
LA October 27, 2016Roger
MN October 27, 2016FionaBayly
New York City October 27, 2016Jim Klopman
Utah October 27, 2016DS
BK October 27, 2016And, if you want to get silly you can say that the external stimuli are another form of training, seeing as though athletes will be performing in front of crowds.
One final note - it's physiologically impossible to go all out for 30 seconds. The ATP-CP system burns out long before that time.
40 Comments