ABSTRACT
INTRODUCTION The so-called social dimension means that the European Union can issue guide lines on, for example, working conditions, working hours and maternity leave to its members. The rationale for such recommendations, which do not concern Great Britain, is the fear that countries may otherwise engage in a competitive lowering of wage costs and social standards, especially if they are concerned with market shares (see also Chapter 4, by Ajit Singh). For example, it has been argued that there is a pressure among welfare states to lower social standards to compensate for cost disadvantages as compared with low-wage countries. A competitive reduction of labour costs and social protection is called social dumping (Abraham 1991, 1993). Without super-national regulation, countries with less protection might gain unfair market shares. For example, Williams and Haslam (1992) argue that the initial successes of the Japanese car industry depended on a longer and more intense working time rather than technological superiority.
