Social dumping – a particular problem for the construction industry?

Abstract

The construction industry is often identified as particularly vulnerable to social dumping. Social dumping is a sensi- tive issue in the administration of public construction projects, as is the case with the current Metro construction project in Copenhagen. Jobs in the construction sector in Denmark increasingly go to foreign workers, while there remain many unemployed Danish construction workers. At the same time, the prevalence of work injuries in construction is high, and foreign work- ers are overrepresented in the statistics. In the public discourse these problems are increasingly associated with social dumping. However, it is unclear what social dumping actually covers. The overall objective of this article is to clarify the concept of social dumping. A definition of the concept of social dumping will be used to explain the perceived problems with social dumping in the construction industry. The definition of the concept also serves the purpose of providing a meaningful framework to discuss initiatives addressing social dumping. We explore whether social dumping in the construc- tion industry is a particular problem with observable consequences for wages and safety. The empirical data are based on participation in the coordinated effort of the police, Tax authorities, and the Work Environment Authority. We show that social dumping has its source at the structural level and in particular places the regulation of salaries in the construction industry under pressure. Similar developments might be seen in other sectors as well, for example farming, cleaning industry and restaurants. We also conclude that it is difficult to distinguish between observable consequences of social dumping and the impact of other factors that can lead to poorer working conditions. Ourconcept of social dumping also visualizes that the Working Environment Authority’s special social dumping action primarily limits the impact of social dumping, but only slightly affecting the underlying mechanisms of social dumping.