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Labour Market Failure - Exploitation of Migrant Workers

Geoff Riley

27th May 2009

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Martin Shankleman of the BBC reports on what looks a like a blatant example of exploitation of vulnerable migrant workers who seek employment in the (often unlicensed) UK food processing industry. Gangmasters have monopsonistic power in their own labour markets and, as this report shows, Saphire Trading based in Southampton appears to have shown a disgusting lack of care for many of the people they have taken on. A severe case of labour market failure and one that requires effective regulation - in this case the Gangmasters Licensing Authority.

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Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD and Revision conferences in the UK and overseas.

@tutor2uGeoff

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