Cheap Labour Explained – How Corporations Rig the Game
Corporations talk about “growth” and “efficiency.” What they mean is cheap labour. Behind every glossy diversity pledge or sustainability report, there’s a simple calculation: keep wages down, keep profits up.
This isn’t an accident. It’s a system — carefully managed through migration policy, trade deals, and government capture. The losers? Workers, everywhere.
Table of contents
What Is Cheap Labour?
In plain English: work that pays less than it’s worth, made possible by an endless supply of disposable workers.
For corporations, cheap labour means:
- Higher profits — payroll is the biggest cost, so keep it low.
- Controlled wages — stop salaries from rising across the board.
- Weak workers — divided, insecure, and easy to replace.
How Corporations Keep It Flowing
- Migration as a Valve
When wages rise, governments are pressured to “solve labour shortages.” Translation: open the borders to bring in new workers, often poorer and easier to exploit. - Lobbying & Donations
Corporations fund campaigns, wine-and-dine politicians, and write “policy proposals.” The result? Laws that protect employers, not employees. - The Relocation Threat
“If you raise wages, we’ll move to Asia.” Governments fold. Workers lose. Corporations pocket the difference. - Global Supply Chains
Factories, farms, warehouses — shifted to places with low wages and weaker protections. The race to the bottom becomes permanent.
The Fallout
- Stagnant Wages → Workers produce more, earn the same.
- Inequality → CEOs and shareholders pocket the gap.
- Exploitation Abroad → Workers in developing countries toil in brutal conditions.
- Dependency at Home → Economies rely on constant inflows of new workers instead of fair pay.
Case Study: Post-COVID Reset
After COVID, workers briefly had leverage. Shortages pushed wages up. For once, the balance tilted. The response? Governments ramped up migration again, framing it as compassion while corporations sighed in relief. Inflation was tamed, but workers’ bargaining power vanished.
Why It Matters
Cheap labour isn’t just about money. It’s about power. When corporations can flood the labour market at will, democracy itself bends. Workers are left divided and disposable, while corporations write the rules.
Conclusion
Cheap labour is not an accident. It’s a strategy. A feature, not a bug. Corporations rig the system to keep workers weak, governments compliant, and profits flowing.
The rhetoric is “inclusion” and “opportunity.” The reality is exploitation.
Related Articles
👉 Stakeholder Capitalism – The Corporate Takeover of Democracy
👉 Neoliberalism – Profit Above All Else
👉 For the bigger picture of how corporations gained their power, visit The Power of Business & Corporations Explainer Hub.
FAQ
What does “cheap labour” mean?
Work that pays less than it’s worth, enabled by migration, outsourcing, or weak labour protections.
How do corporations keep wages low?
By lobbying governments, threatening relocation, and ensuring a steady supply of workers through migration.
Why do governments allow it?
Because corporations fund their campaigns, promise “growth,” and warn of economic collapse if wages rise.
What’s the impact on society?
Stagnant wages, growing inequality, weaker worker rights, and dependence on endless inflows of cheap labour.
