MEPs urge EU Commission to prioritise public procurement reform

As negotiations on the next European Commission’s priorities are ongoing, today Members of European Parliament from four parliamentary groups (EPP, S&D, Greens, The Left) call on the Commission to urgently reform EU public procurement rules to strengthen collective bargaining and promote decent jobs.

Currently, EU public procurement rules are skewed to favour price in the awarding of contracts above all other considerations, such as working conditions and quality of services. This way, companies are rewarded for undercutting working conditions by suppressing workers’ fundamental collective bargaining rights.

With their call for better public procurement rules, the four parliamentarians – Gaby Bischoff, Dennis Radtke, Sara Matthieu and Per Clausen – take up the work of the cross-party “Public Procurement Alliance” launched during the last legislature.

Vice-President of the S&D Group Gaby Bischoff (S&D) said: “The EU’s current procurement rules lead to a race to the bottom on working conditions. Instead, we should use the EU’s and other public authorities’ public spending to drive a race to the top. Therefore, it is essential that Ursula von der Leyen with her European Commission commits to a public procurement reform in the next legislature.”

Every year, public authorities in the EU spend 14 per cent of GDP – around 2 trillion euros – on purchases of goods and services, a powerful lever to achieve social goals such as the 80 per cent collective bargaining coverage set out in the EU’s minimum wage directive.

Dennis Radtke MEP (EPP) said: “The EU’s minimum wage law has set an 80 per cent target for collective bargaining coverage across member states. The EU and its member states should use their spending power through public procurement to reach that goal. That requires the Commission to explore the possibility to review procurement rules  in order to reward companies that play by the rules.”

Sara Matthieu MEP (Greens/EFA) said: “We don’t want companies competing for public tenders solely on offering the lowest price on the back of their workers. That’s not just unfair to them, but to those companies with decent working conditions, collective agreements and good quality services. In the La Hulpe declaration, EU institutions committed themselves to sustainable public procurement in order to promote collective bargaining. Now, we call on Ursula Von der Leyen to follow through by including a public procurement reform in the next work programme of the Commission.”

Per Clausen MEP (The Left) said: “All too often, workers employed on public contracts suffer from low pay, overwork and unsafe conditions. That’s because procurement rules incentivise public authorities to award tenders to companies that offer the lowest price. These companies often don’t have collective agreements with trade unions, which ensure good pay and conditions. The Commission needs to change the rules in the next legislature.”

UNI Europa, the European Services Workers Union, together with other European trade union federation and the ETUC has advocated for the long-overdue reform of the EU Public Procurement Directive. Since the launch of its #ProcuringDecentWork campaign three years ago, over 180 Members of European Parliament, an EMPL Committee study, the European Court of Auditors, researchers, experts, social partners in cleaning, security and catering all support a change in EU public procurement rules.

Oliver Roethig, Regional Secretary of UNI Europa, said: “It’s only right that taxpayers’ money should be spent on decent jobs. The EU has set a target for collective bargaining coverage in member states, now the Commission must lead by example and reform procurement rules so that only companies with a collective agreement benefit from public money.”

This year, the La Hulpe declaration marked the first time that several EU institutions and social partners jointly urged for sustainable public procurement to promote collective bargaining. Subsequently, in his report on the European single market, Enrico Letta made the case for strategic and social public procurement. In addition, the EU Council has called for a review of procurement rules.