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social dumping


'social dumping' can also refer to...

 

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This term has two similar meanings. (a) Within the context of Europe, social dumping is the use of low-labour standards by a member state of the European Union to attract jobs and investment from other member states. Essentially, it refers to the export of unemployment from countries with low-labour standards to those with higher standards. The European Commission and member states, such as France, Germany, and the Netherlands, have argued that there must be relatively high-minimum labour standards across the European Union in order to discourage social dumping. (b) Social dumping is the process whereby a transnational organization shifts production from a country with relatively high-employment costs to a country with lower costs (see regime shopping). Critics argue that this is one of the negative consequences of globalization because it means that companies can switch production from developed economies with regulated employment conditions and protection for employees to developing countries with cheap labour and unregulated working conditions.

(a) Within the context of Europe, social dumping is the use of low-labour standards by a member state of the European Union to attract jobs and investment from other member states. Essentially, it refers to the export of unemployment from countries with low-labour standards to those with higher standards. The European Commission and member states, such as France, Germany, and the Netherlands, have argued that there must be relatively high-minimum labour standards across the European Union in order to discourage social dumping. (b) Social dumping is the process whereby a transnational organization shifts production from a country with relatively high-employment costs to a country with lower costs (see regime shopping).

Subjects: Human Resource Management.


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