iPhone factory workers say they haven’t been paid, cause millions in damages

Re:iPhone factory workers say they haven’t been paid, cause ... by bongoman37 on Wednesday December 16, 2020 @04:17AM (#25440509)

This is not surprising at all. I was at an Indian firm a while back and due to arcane labor laws, we did not want to hire a network engineer but needed one to work with some Cisco equipment we were getting. We agreed to pay Cisco about $1000/month for 2 years to have an engineer on their books but placed at our firm. When the engineer was actually placed I learned from someone that he was being paid ~$100/month so Cisco was skimming about 90% of what we paid for him.

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Re:iPhone factory workers say they haven’t been paid, cause ... by webmobdev on Friday December 18, 2020 @01:48PM (#25470445)

> When the engineer was actually placed I learned from someone that he was being paid ~$100/month so Cisco was skimming about 90% of what we paid for him.

Not exactly. These are contract employees.

How it works is that corporates often have tie-ups with certain HR firms to provide them employees with certain skills, on demand. Depending on the requirement, these tech employees work remotely or on-site, but on the payroll of the middle-man HR firm.

So when you ask Cisco for a network engineer, they contact these HR firms and send them the requirement. The HR firm sends a list of candidates, and Cisco selects the most-suited one. This person is then sent to you. But they are not paid by Cisco as they are not really a Cisco employee. Cisco pays the HR firms a fixed contract rate and the HR firm pays a percentage of that to the worker.

Cisco definitely skims some of the money, but a large portion of it does go to these kind of contract HR firms.

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