Gangmasters and monopsony power

How many gangmasters are there operating in the UK? Does the Licensing Authority really have a proper handle on the scale of workers being organised and often exploited by gangmaster businesses?  I was discussing this issue of monospony in my A2 revision presentations at London and Manchester in the last week. It is I feel one of the really important aspects of market failure in a largely deregulated labour market.

The BBC reports that “a gangmaster has been stripped of his licence after investigators uncovered a “disgraceful story of forced labour” amongst migrant workers in Scotland.” The government has introduced a licensing scheme for gangmasters - partly as a consequence of the awful events that unfolded for the Chinese cocklepickers on Morecambe Bay (captured superbly in Nick Broomfield’s recent film “Ghosts”).

Unit1 Micro: Can a minimum wage create jobs? [16 Jan 2012]
Unit 3 Micro: Unilever hit by rising costs [6 Nov 2011]
So many economic concepts in one article - Indian tomato production. [11 Oct 2011]
Unit 3 Micro: Monospony Power and Low Wages in Care Homes [3 Oct 2011]
A2 Micro:  Monopsony Power in Markets [19 May 2011]
A2 Micro: Market Structure, Conduct & Performance [19 May 2011]
Economics at the Movies - Black Gold [24 Oct 2010]
Let’s hear it for the girls! [7 Oct 2010]
Groceries adjucator checks in [3 Aug 2010]
Pressure for higher minimum wages in Bangladesh [28 Jul 2010]
Low pay, discrimination and monopsony power in the labour market [26 Jan 2010]
Focus on the National Minimum Wage [24 Jan 2010]
Monopsony Power - Supermarket Bullies? [22 Oct 2009]
Swine flu vaccines and elasticity of supply [7 Oct 2009]
Apprentice Jockeys and Low Wages [9 Sep 2009]
Fiscal policy, public sector pay and employment flexibility [5 Jul 2009]
Labour Market Failure - Exploitation of Migrant Workers [27 May 2009]
Revision - Labour Market Failure (presentation) [27 May 2009]
Rio Tinto and Nippon Steel agree big cut in iron ore prices [26 May 2009]
Passing the burden - Sainsbury’s and their suppliers [27 Apr 2009]
Beet farmers look for better price to sweeten the pill [19 Aug 2008]
TUC calls for minimum wage for apprentices [8 Aug 2008]
Declan quizzes the Amazon boss [24 Jul 2008]
Making both ends meat [18 Jul 2008]
Tipping Point for Restaurants [15 Jul 2008]
Has competition in postal services delivered? [7 May 2008]
Aspects of labour market failure [27 Apr 2008]
Revision: Labour Market Failure [21 Apr 2008]
Price of everything, value of nothing [28 Mar 2008]
Dividing the spoils in the milk industry [18 Mar 2008]
Minimum wage is increased [5 Mar 2008]
Monopoly Power [17 Feb 2008]
Black Gold – an extraordinary documentary about coffee [27 Nov 2007]

ECONOMICS TEACHER RESOURCE NEWSLETTER

Join over 6,000 other Economics Teachers in the UK and around the world who receive the tutor2u regular Economics Resource Email Newsletter. Get special offers, first news of latest resources, teaching ideas, conferences and workshops + loads of great ideas for teaching economics from our blog authors.