“Third world employees deserve to be paid less”: Entrepreneur labels Indian workers ‘disposable,’ justifies lower pay

Franco Pereyra, co-founder and COO of Near, a platform that helps U.S. firms hire remote Latin American talent, has caused a stir online with his comments on global wage disparities. Pereyra argued in a LinkedIn post that it is fair for global workers to be paid less than their American counterparts, sparking a wider debate on the ethics of international hiring.

“It’s Okay for Global Workers to Get Paid Less”

Pereyra justified his stance by linking wages to cost-of-living differences. “As an Argentinian living in Buenos Aires, I see how some people get upset by that statement,” he wrote. “But I get to stay in my country, be with my family, and enjoy a lower cost of living.”

You deserve to be paid less because you live in a third-world country
byu/mapache-clandestino inLinkedInLunatics

He acknowledged that his perspective might not sit well with everyone. “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 added.

Online Backlash and Debate

The controversial post quickly gained traction online, being shared on the “LinkedIn Lunatics” subreddit, where opinions were sharply divided. Some commenters defended his point, noting that wage differences are integral to the practice of offshoring. “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,” one user wrote.

Others criticised his remarks for oversimplifying the issue. “It is odd that he never mentioned the cost of living or working conditions,” another commenter noted.

Global Workers are “Disposable”

In a follow-up LinkedIn post, Pereyra highlighted the exploitative practices faced by global workers, particularly in countries like India and the Philippines. “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.

Pereyra outlined the negative effects of such practices on both employees and companies. “The employees have a miserable couple of months and then leave, while the company deals with the chaos of constant turnover, rehiring, and retraining,” he explained.

The Bigger Picture: A Global Labour Ecosystem

The controversy surrounding Pereyra’s comments brings attention to the broader dynamics of international hiring. Indian IT workers, for example, have become a cornerstone of the global technology ecosystem, driving innovation through SaaS and other platforms. However, these contributions are often undervalued due to the prevalence of low wages and limited benefits.

While Pereyra’s views align with economic realities, they underscore the ongoing challenges of creating equitable and sustainable hiring practices worldwide. Companies looking to reduce costs often risk perpetuating exploitative systems, leaving both workers and organisations at a disadvantage.

As globalisation continues to shape the workforce, Pereyra’s remarks highlight the need for nuanced discussions on wage disparities. Finding a balance between cost efficiency and fair treatment of workers remains a key challenge for companies navigating the complexities of international hiring.