SOCIAL DUMPING 1

Social Dumping

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The term social dumping in simple terms can be used to refer to an exercise whereby

employers opt to go for inexpensive labor than what is literally available. This is usually seen in

two cases whereby in the first one there is employing of migrant workers and in the second case,

there is an exercise of moving production to an area or country that is deemed to have a low-

wage. This leads to more realization of profit on the site of the entrepreneur due to the money

that is saved. However, research shows that social dumping is only seen in an incident where

employees that are foreigners are bound by safety, gaps of health, and even working atmosphere

regulations. As a result, a social policy regime is adopted by most unions in order to lower the

cost of labor on businesses and reduce social standards.

Looking at a case in Norway for instance, there are a number of set action plans to

manage social dumping put in place by the government (Caristina and Sayeg, 2014, p70). Rules

concerning the working environment, safety, and health are set to apply to each and every one

that is employed in Norway. The Working Environment Act provisions are also put in place to

protect employees that are foreigners but within an area of jurisdiction covered by the rules

regarding what can be termed as collective agreements in terms of wages (Rutgers, 2011).

Conclusion

Countries that are seen to have great union density, there are high possibilities of unions

being weakened as a result of foreign workers and companies not obeying collective union

treaties. This, in turn, changes the whole labor market unless special measures are put in place to

pressure such environments (Barnard, 2008). For instance, in Denmark, lack of laws that are

meant to regulate the labor market had made the situation more problematic in most companies

(SHIMChangHack, 2010, p.1).

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Reference List

Barnard, C. (2008). SOCIAL DUMPING OR DUMPING SOCIALISM?. The Cambridge Law

Journal, 67(02).

Caristina, J. and Sayeg, R. (2014). Social dumping: violation of humanist economic order. Lex

Humana, 6(1), pp.70-96.

Rutgers, J. (2011). An Optional Instrument and Social dumping revisited. European Review of

Contract Law, 7(2).

SHIMChangHack (2010). Activation and Social Protection: focusing on the Unemployment

Assurance and Social Assistance in Denmark. Social Welfare Policy, 37(1), pp.1-30.