In: Economics
Are International Labor Standards Needed to Prevent Social Dumping?
Yes international labor standards are essential to prevent social dumping. Social dumping refers to producers using cheap labor other than ones available on their site of production. This refers to more use of migrant laborers due to cheaper availability. Also production could be moved to low waged nation or economy like China and Bangladesh. First argument is economic one and second is moral one. As per the economic argument, low wages and labor standards in developing nations can spoil the living standards of workers in the developed nations also. As per moral argument, low wages and lack of proper labor standards would violate human rights of workers in the emerging nations. Different institutions and countries would differ in formulating the labor standards and they would reflect economic and moral concerns. The labor standards in US legislation allow freedom of association, right to organize and bargain collectively, minimum age for employment of children and guarantee of acceptable working conditions. Some of these measures like freedom of association, regulations on work conditions and wages are economic kind. Core labor standards are being worked upon by the International Labor Organization and OECD for international consensus. Elimination of discrimination is also a standard requirement and this relates to the moral ground.