Social dumping

See also Dumping (pricing policy) - international trade; and SUTA dumping - tax avoidance (US)

"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.