Social dumping


Social dumping is a practice of employers to use cheaper labour than is usually available at their site of production or sale. In the latter case, migrant workers are employed; in the former, production is moved to a low-wage country or area. The company will thus save money and potentially increase its profit. 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.
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 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.