Von der Leyen’s public procurement reform must lift workers’ living standards

At the beginning of her first mandate, European Commission President Ursula von der Leyen said that “collective bargaining is crucial”. The result was the EU minimum wage directive, setting a strategic target of 80 per cent collective bargaining coverage in each member state. As von der Leyen has now been re-elected for another term, she promises to further promote collective bargaining by developing a “Quality Jobs Roadmap” jointly with social partners. The roadmap will focus on increasing collective bargaining coverage to “support fair wages, good working conditions, training and fair job transitions for workers, whether employed or self-employed”.

The EU’s strongest tool to reach 80 per cent collective bargaining coverage is public procurement. UNI Europa therefore welcomes von der Leyen’s commitment to revise the EU Public Procurement Directive, a long-standing UNI Europa and ETUC demand. Any revision, however, must ensure that only employers which respect collective bargaining are eligible for public contracts.

Oliver Roethig, UNI Europa Regional Secretary, commented: “We welcome von der Leyen’s continued commitment to increasing collective bargaining coverage. To turn that commitment into reality, her promised revision of the EU Public Procurement Directive must ensure that only companies which respect collective agreements can apply for public tenders.”

Currently, EU public procurement rules are skewed to favour price in the awarding of contracts above all other considerations. As UNI Europa research has shown, half of all tenders across the EU are awarded solely based on the lowest price, undermining von der Leyen’s promise of quality jobs, quality services and fair competition.

There’s a broad consensus for a social revision of procurement rules to reach the strategic target of 80 per cent collective bargaining coverage.

The week before von der Leyen’s re-election, a cross-party Public Procurement Alliance of Members of European Parliament from four parliamentary groups (EPP, S&D, Greens, The Left) called on the Commission to reform EU public procurement rules to strengthen collective bargaining and promote decent jobs. Earlier this year, EU institutions – including von der Leyen’s Commission – and social partners jointly called for sustainable public procurement to promote collective bargaining in the La Hulpe declaration. Enrico Letta’s recent report on the future of the European single market, too, emphasised the importance of integrating collective bargaining into public procurement policies.

During the Commission’s last mandate, over 180 Members of European Parliament, an EMPL Committee study, the European Court of Auditors, researchers, experts, social partners in cleaning, security and catering  supported revising EU public procurement rules to strengthen collective bargaining as well.

Oliver Roethig, UNI Europa Regional Secretary, concluded: “Public procurement – which accounts for 14 per cent of the EU’s GDP – has the power to raise the floor of pay and conditions for workers across the European Union, especially in the services sectors. It was essential workers in services – the heroic cleaners, carers and logistics workers – that brought us through the Covid-19 pandemic. And it is them who most often are facing exploitation working for private companies on public contracts. This abuse must end with the upcoming revision of EU public procurement rules.”