Question

What is social dumpimg and why should trade unions be concerned about it?

Answer 1

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.