CESI: New EU public procurement rules must be socially fair

CESI Secretary General Klaus Heeger said: "We support the idea of revised EU public procurement minimum standards that are a powerful tool to stimulate jobs, growth and investment and which thereby foster an economy that is more resilient, innovative, resource and energy-efficient - and socially inclusive. At a time when efficiency, innovation and competition are increasingly being prioritised, we insist that social outcomes must remain at the forefront of any revision of the public procurement directives."

In this context, CESI called on the European Commission to consider in legislative proposals for revised public procurement rules:

• ‍An incorporation of mandatory social criteria: Revised directives must require the inclusion of mandatory social criteria in procurement tender procedures. Bidders should be required to be assessed not only on price and technical capacity but also on compliance with EU, national and sectoral labour laws, the observance of collective bargaining agreements, and adherence to minimum wages and safe and healthy working conditions. This approach would effectively counter a race to the bottom of social and labour standards through public procurement. ‍
• Early and systematic involvement of trade unions and worker representatives: Revised public procurement directives should make clear that trade unions and worker representatives in public authorities must be integrated in procurement processes at an early stage. They should have a monitoring role in the awarding process to ensure that labour standards are upheld from the outset. Tender documents should be subject to approval by representative employee participation bodies. This would safeguard against adverse impacts on workers and strengthen accountability, too.‍
• Protection of job security and transition provisions: Revised public procurement directives should encourage protect workers in the event of a transfer between service providers during the execution of services under a publicly awarded contract. Such protection relates most notably to the preservation of existing terms and conditions,the recognition of service length, and consultation practices with trade unions. This wouldenhance job security and predictability for affected workers. It would counterthe instability which often associated with frequent re-tendering.

CESI also stressed that

• current EU public procurement rules provide uncertainty and ambiguity about the incorporation of social conditionalities in public tender procedures. Despite a plethora of guidance material from the side of the European Commission, many authorities in charge of issuing call for tenders are unsure on how to create legally soundproof tender documents with social conditionalities. In the end, many refrain from it and just play safe by opting for tender procedures on the basis of lowest bidders.
• with clear and simple rules on social conditionalities to be included in tenders (notably, a respect for a collective agreements), significant levels bureaucracy and red tape could be cut, while at the same time numerous workers across Europe currently abused would benefit from better employment and working conditions.
• a simple and clear wording could be possible along lines such as: “A public tender may only be awarded to a beneficiary that does not apply a collective agreement if there is no other applicant that does so while also fulfilling other applicable tender specifications. Otherwise, no public tender may be awarded to a beneficiary that does not apply a collective agreement to its workforce.”
• a revision of the public procurement directives could in this way be a landmark example on how to reconcile cutting red tape with improved social justice.

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