Incorporating Labour Standards in Public Procurement. The Union Perspective. Tim Page Senior Policy Officer, TUC

Transcription

1 Incorporating Labour Standards in Public Procurement The Union Perspective Tim Page Senior Policy Officer, TUC

2 Introduction This presentation will cover: The role of labour standards in achieving DFID s goal of poverty reduction and development; The importance of trade unions in driving forward labour standards and reducing poverty; The opportunities provided by the EU procurement directives Some European comparisons of procurement law and its implementation.

3 DFID and Core Labour Standards In 1997, the Labour Government established the Department for International Development, to underline our clear commitment to ending extreme poverty in the world. Tony Blair, July 2006 An essential part of poverty elimination is those human rights known as core labour standards: freedom of association and the right to free collective bargaining; elimination of all forms of forced or compulsory labour; effective abolition of child labour; and elimination of discrimination in respect of employment and occupation Hilary Benn, May 2004

4 Unions, poverty reduction and democracy In 2006, acknowledging the vital role that the international trade union movement has to play in global poverty reduction, Hilary Benn said that DFID would be offering much more support in areas like elections, human rights, parliaments and trade unions. Historically, trade unions have frequently lead struggles for democracy, political representation and accountability, gender and other equalities and the provision of basic education and healthcare.

5 International Solidarity International trade union structures allow us a voice on matters affecting workers throughout the world, in both developed and developing countries. This is crucially important if we are to meet global challenges that know no national boundaries, such as climate change and corruption. There are many tools needed to help achieve DFID s overall goal. Smart procurement is one such tool.

6 Procurement in the European Union The EU procurement directives provide for the purchase of goods and services by public sector bodies on the basis of fair competition. The directives also provide opportunities for procurement to be conducted in a way that meets various social and environmental criteria. Trade unions believe the directives clearly allow us to promote the use of core labour standards in purchasing decisions.

7 Recital 33 The key section of the Public Sector Directive that allows such action is Recital 33. This states: Contract performance conditions are compatible with this directive provided that they are not directly or indirectly discriminatory and are indicated in the contract notice or in the contract documents For instance, mention may be made, amongst other things, of the requirements to comply in substance with the provisions of the basic International Labour Organisation (ILO) Conventions, assuming that such provisions have not been implemented in national law.

8 The Coverage of ILO Conventions The OGC states that inclusion of any clause relating to ILO standards must be considered on a contract-by-contract basis, to ensure non discrimination. However, under the 1998 Declaration of Fundamental Principles and Rights at Work, all 180 member states of the ILO are bound to respect and promote the standards enshrined in the core conventions, regardless of ratification. Therefore, reference to ILO core standards will very rarely give rise to potential discrimination and only in the case of tendering parties established in the very few states which are not members of the ILO.

9 Identifying Need The OGC says that procurement staff should be aware of which social priorities the Government and government organisations are pursuing at home and abroad In our view, where the respect and promotion of core labour standards is intrinsic to the mission and values of a procuring authority (such as DFID), it must follow that respect of these standards may be included in the definition of the needs of a procuring authority.

10 Reputational Risk DFID, along with other government departments, will also wish to protect their reputation. For the Government Department dedicated to, in Tony Blair s words, ending extreme poverty to be found purchasing products made in contravention of ILO core labour standards would be highly embarrassing, as well as totally perverse. This is a particular issue to be borne in mind as we approach the 2012 Olympics. If procuring authorities were found to be purchasing, for example, sports equipment in contravention of ILO standards, the UK s reputation would come under great strain.

11 European Comparisons of Procurement Law The TUC believes the OGC s interpretation of EU law was excessively timid. Other European countries have been more progressive. Belgian legislation transposing the EU procurement directive enables contracting authorities to include a performance condition the requires suppliers to comply with core ILO conventions in the country of production. The Dutch Government has committed to observing core labour standards in its procurement policies from We urge DFID and OGC to learn from best practice in these and other countries.

12 Can We End World Poverty? We are part of one moral universe and wherever and whenever there is poverty, deprivation and need, it is our duty to act. Gordon Brown, January 2005 The TUC fully supports DFID s historic goal to end extreme poverty in the world. This will not be quick or easy. It can only be achieved by using every means at our disposal. Respecting core labour standards in procurement policy will not end extreme poverty; it is simply one of the many tools that we will need to reach that goal. We urge DFID to make full use of that tool.