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Founder says it’s okay to pay Indian workers less than Americans. Controversial post sparks debate
Franco Pereyra's remarks about paying overseas workers less due to lower living costs have drawn backlash.
An entrepreneur from Argentina has managed to offend a large section of the internet with his posts on hiring global talent. In a series of LinkedIn posts, Franco Pereyra said it is “okay for global talent workers to get paid less than Americans,” while conceding that a lot of companies chase the cheapest possible labour and do not offer the same benefits to overseas workers that American employees get.
Pereyra is the co-founder and COO of Near, a company that helps US firms hire remote Latin American talent.
“It’s okay for global workers to get paid less than Americans”
One week ago, he shared a controversial take on LinkedIn, claiming it is okay for people in other countries to get paid less than Americans. Pereyra justified his stance by saying that the cost of living in other countries is lower than America and opportunities are limited.
“As an Argentinian living in Buenos Aires, I see how some people get upset by that statement,” he admitted, adding: “But I get to stay in my country, be with my family, and enjoy a lower cost of living.”
Pereyra admitted that some workers get exploited and treated as cheap labour, but still stuck to his stance on paying workers less than Americans.
“A lot of people get upset and say workers in Latin America, India, and the Philippines are being exploited. And yes, there are certainly companies that do exploit global talent. But paying less for overseas work is not inherently wrong,” he said.
His post made it to the “LinkedIn Lunatics” community on Reddit, where many agreed with his opinion and others offered contrary takes. “You deserve to be paid less because you live in a third-world country,” read the title of the Reddit re-post.
“That's just how offshoring works. If they weren't able to pay people in lower cost of living countries less money, they wouldn't employ those people. It's the only reason they do that,” wrote one person in the comments section.
“It is odd that he never mentioned the cost of living or working conditions,” another said.
“Workers treated as disposable”
In a separate post, Pereyra again said that a lot of companies hire cheap overseas workers in order to pay them less. Workers from countries like India and the Philippines are especially vulnerable to this.
Indian IT workers play a pivotal role in the global tech ecosystem. The rise of SaaS companies in India has also made Indian workers a key resource for delivering innovative products to global markets.
However, Pereyra conceded that some companies not only pay Indian workers less but also don’t give them support resources.
“I see this happen way too often, especially with talent from India and the Philippines—a revolving door of workers treated as disposable,” he said.
The Argentinian CEO said that both companies and workers lose out in this scenario. “The employees have a miserable couple of months and then leave,” he said, while “the company deals with the chaos of constant turnover, rehiring, and retraining.”
