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Encouraging Public Authorities to Make Better Use of Social Considerations When Buying Goods and Services

In 2005 the EU’s public procurement markets were worth more than one sixth of the EU’s gross domestic product. This clearly underlines their economic importance, but also the need to shape them around social, ethical or environmental considerations and objectives. A study on the legal and policy framework for the inclusion of social criteria in call for tenders in selected Member States, including six case studies, has been recently published.

Yesterday the European Commission (DG Employment, Social Affairs and Equal Opportunities & Internal Market) organised a meeting to inform representatives from trade unions, employers’ associations and civil society organisations about the main results of this study. During the seminar Commission staff sketched out the next steps in view of the elaboration of a Commission guide and asked for first comments. Interested parties are invited to make their comments and proposals by the end of this year, and the document should then be ready by late spring 2009. The guide will aim at providing more clarity on the applicable legal framework as to social considerations and at encouraging their usage when public authorities at national, regional or local level buy goods and services.

The majority of questions and remarks from the audience during the meeting concerned four categories of social considerations, those related to 1) the promotion of social inclusion for disadvantaged persons (e.g. from ethnic minorities) or groups (e.g. handicapped persons), 2) employment opportunities or professional training possibilities for elderly or young people, 3) decent work (e.g. equal pay, realisation of individual and collective labour law, prohibition of forced and child labour) and 4) fair and ethical trade.

Many participants referred to a large body of evidence from various countries and different economic sectors, in particular construction work and cleaning services, but also social, health and education services, to raise the concern that competent public authorities as a rule retain the offer with the cheapest price. The second option, as stipulated in both European and national regulations, namely to chose the economically most advantageous offer, is thus clearly underused. There was also a call to make a clear distinction while drafting the guide between social considerations used to safeguard decent working conditions in local labour markets and other to promote the application of core labour standards set by the International Labour Organisation (ILO) in developing countries.

SOLIDAR member Swiss Labour Assistance is running a campaign on fair public procurement and has prepared information material as well a guide on fair and ethical public procurement for municipalities (in German and French).

Read more about the study and the guide on social considerations in public procurement 1|2