A new report indicates a significant risk of social dumping within Danish companies that employ foreign workers. The National Research and Analysis Center for Welfare (Vive) estimates that nearly one in four of these companies may be engaging in practices that disadvantage their foreign employees.

The report, which analyzed data from 59,355 companies, suggests that 23.4 percent are at risk of social dumping. This can include scenarios where foreign workers receive lower wages or work under poorer conditions compared to their Danish counterparts.

Senior researcher Jan Hyld Pejtersen highlights the connection between education levels and the risk of exploitation, stating that lower education levels often correlate with lower salaries and longer working hours, thereby increasing the risk of social dumping.

The report utilized a statistical method called Random Forest to estimate the risk of social dumping. This method analyzes existing data on violations of working environment legislation, tax law, and aliens law to create a general risk assessment. It is important to note that this method estimates risk rather than determining the specific number of companies actively engaging in social dumping.

The Danish Employers’ Association (DA) has strongly criticized the report’s methodology and findings. Director Jacob Holbraad argues that the method is “deeply misleading” and exaggerates the problem. He points out that a minor violation, such as a cable hazard identified by the Danish Working Environment Authority, could lead to an entire company being categorized as at risk of social dumping, regardless of whether international employees are affected. Holbraad asserts that this approach paints an inaccurate and unfair picture of the situation.