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Global competition between companies creates a race to the bottom A company can increase profi ts by either increasing productivity or cutting costs. Other companies are then forced to do the same. This constant competition for profi t creates a cycle where companies try to produce and sell more, while also reducing wages and conditions and intensifying and speeding production. This is known as the race to the bottom. How does the race to the bottom affect workers? The race to the bottom means that companies globally will continually try to cut workers’ wages and conditions. Companies want workers to work harder, for longer, for less money, and in less safe workplaces so they can continue to compete. Global Picketline - Asia Workers Organising - aawl.org.au 5


awo201405 Final.indd
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