The Left Study: tackling the social dumping business model

There’s a significant problem when the social dumping business model is normalised.  

On 7 December 2023, the Left launched the study “Subcontracting: Exploitation by design – Tackling the social dumping business model”. 

The study elaborates how subcontracting is a business model that normalises exploitation and social dumping so that companies can increase their profits. It allows companies to separate power and profits, on one side, from risks and responsibilities, on the other side. While most people would expect the exploitation of workers to be illegal, the study addresses both the illegal and legal forms of workers’ exploitation and social dumping. 

The study among other things recommended to amend legislation on public procurement to “award companies that respect and promote trade unions rights along their entire subcontracting chain” and to clearly “state that social clauses aimed at strengthening work stability are consistent with EU law.” 

The study also calls on strengthening the rule on joint and several liability, introducing a full liability along the entire subcontracting chain and to increase workers’ equal treatment by obliging subcontractors to guarantee their workers at least the same treatment received by the main contractor’s workers. 

The Left study arrives at the right time. December 2022 marked the month where more than 150 MEPs supported the pledge for #ProcuringDecentWork, in which they called for reopening the public procurement directives. This message was relayed to the European Commission in an open letter and several MEPs called for the Commission to respond. 

Related links:  

• The Left study “Subcontracting: Exploitation by design – Tackling the social dumping business model”.