Social dumping

Social dumping is a term that is used to describe a practice of employers to use cheaper labour, than is usually available at their site of (1) production and/or (2) selling. In the first case, migrant workers are employed; in the second, production is moved to a low-wage country or area. The entrepreneur will thus save money and potentially increase his profit. Systemic criticism suggests that, as a result, governments are tempted to enter a so-called social policy regime competition whereby they would reduce their labour and social standards in order to ease labour costs on enterprises and, eventually, to retain business activity within their jurisdiction.

There is a controversy around whether social dumping takes advantage of an EU directive on internal markets: the Bolkestein directive.

Entities losing from social dumping:

Entities gaining from social dumping:

A joint NGO statement[1] on the EU Seasonal Migrant Workers' Directive[2] 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 will be exerting its otherwise welcome, protective measures on the labour market.

See also

References

External links

This article is issued from Wikipedia - version of the 10/27/2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.