Estonia Significantly Increases Quota for Cheap Foreign Labor 0

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Estonia Significantly Increases Quota for Cheap Foreign Labor
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On Monday, two bills amending the Aliens Act are in the third reading at the Riigikogu meeting.

The first of them triples the quota for cheap labor from third countries and eases the conditions for attracting workers, while the second allows a foreigner who has lost their job to remain in Estonia as unemployed for up to nine months and expands their access to all social benefits available in the country.

"The government coalition intends to change Estonia's immigration policy in a situation where the current quota of 0.1 percent of the country's population has not been filled for several years. Moreover, already 85 percent of immigration consists of exceptions to the quota. In such conditions, it is extremely irresponsible to encourage an additional influx of cheap labor — which is exactly what is happening under the guise of the proposed laws, as the quota is increased for citizens of third countries who will only need to earn 0.8 of the average salary in Estonia," stated Helir-Valdor Seeder, the chairman of the Isamaa faction.

Businesses operating in Estonia already have unlimited access to a labor market covering at least one billion people: in addition to the free movement of labor within the European Union, we have similar agreements with the USA, the UK, and Japan.

The immigration limit from third countries has long been set at 0.1 percent of Estonia's population. However, there are many exceptions to this rule: for example, startup entrepreneurs, IT sector specialists, and top specialists earning at least one and a half times the average salary in Estonia are not subject to the quota.

"The claim that the quota needs to be tripled due to a shortage of top specialists is a blatant lie, as the salary threshold is set very low. The explanatory note to the bill lists about 20 areas of activity where these people will be able to work, and instead of specific professions, it provides very broad definitions. For example, the entire transport sector will have the opportunity to hire cheap labor from abroad. Meanwhile, the current government coalition completely ignores the fact that encouraging such migration will create additional pressure on our social system and healthcare system," Seeder noted.

Sectors covered by the new quota for cheap labor (according to the explanatory note to the bill):

  • Manufacturing of machinery and equipment
  • Manufacturing of computers, electronic and optical equipment
  • Manufacturing of electrical equipment
  • Manufacturing of motor vehicles, trailers, and semi-trailers
  • Manufacturing of other transport vehicles
  • Manufacturing of coke and refined petroleum products
  • Manufacturing of chemicals and chemical products
  • Manufacturing of basic pharmaceutical products and preparations
  • Manufacturing of paper and paper products
  • Wood processing and manufacturing of wood products
  • Supply of electricity, gas, steam, and air conditioning
  • Sewage
  • Collection, treatment, and disposal of waste
  • Handling of pollutants and other waste management activities
  • Water collection, purification, and supply
  • Land and pipeline transport
  • Water transport
  • Air transport
  • Warehousing and auxiliary transport activities
  • Manufacturing of other non-metallic mineral products (manufacturing of building materials)
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