Social Dumping
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Social dumping is a practice whereby
employers Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any other ...
use cheaper labour than is usually available at their site of production or sale, for example by moving production to a low-wage country or area, or employing poorly-paid
migrant workers A migrant worker is a person who Human migration, migrates within a home country or outside it to pursue work. Migrant workers usually do not have an intention to stay permanently in the country or region in which they work. Migrant workers ...
. Employers thus save money and potentially increase their profits. Systemic criticism suggests that as a result, governments are tempted to enter a so-called ''social policy regime competition'' by reducing their labour and social standards to ease labour costs on enterprises and to retain business activity within their jurisdiction. In the European Union, there is a controversy around whether social dumping takes advantage of the Bolkestein directive.


Policy issues

A joint
NGO A non-governmental organization (NGO) is an independent, typically nonprofit organization that operates outside government control, though it may get a significant percentage of its funding from government or corporate sources. NGOs often focus ...
statement on the EU Seasonal Migrant Workers' Directive also warns against social dumping. The document argues that a vague definition of seasonal work might fail to cover all types of seasonal employment taking place when the Directive exerts its otherwise-welcome protective measures on the labour market. Marianne Thyssen, European Commissioner for Employment, Social Affairs, Skills and Labour Mobility, has noted that "there is no definition of the concept of "social dumping" in EC law".
Crown Commercial Service The Crown Commercial Service (CCS) is an executive agency and trading fund of the Cabinet Office of the UK Government. The CCS is responsible for managing the procurement of common goods and services, increasing savings for the taxpayer by cen ...
(UK)
THE PUBLIC CONTRACTS REGULATIONS 2015: GUIDANCE ON SOCIAL AND ENVIRONMENTAL ASPECTS
footnote 6 on page 11, referring to a written answer given by the Commissioner on 14 August 2015, published 12 September 2016, accessed 28 December 2022


See also

*
Dumping (pricing policy) Dumping, in economics, is a form of predatory pricing, especially in the context of international trade. It occurs when manufacturers export a product to another country at a price below the normal price with an injuring effect. The objective of ...
* SUTA dumping


References


External links


European Union's Eurofound website: Social dumpingCabinet veterans challenge ministers to address 'social dumping'
- The Guardian newspaper (UK) Tuesday 3 February 2009
Social-dumping: a crisis in the UK Engineering Construction industry
- Amicus website
Social Dumping Hypothesis Issues and Challenges
GMTDC Business Training & Consultation {{DEFAULTSORT:Social Dumping Anti-competitive practices Offshoring International trade Pricing Migrant workers