EU: Public procurement and union demands

European unions push for pro-union clauses in public contracts. Commission unlikely to agree due to competitiveness focus and potential disadvantages to most private sector operators.

Key points: European unions pushing for pro-union clauses in public contracts, but in our view the EU Commission unlikely to agree due to competitiveness focus, especially given the newfound emphasis of the Commission on the competitiveness of European industry. Further, given the political complexion of the Council and Parliament it is unlikely that they will buy the unions demands either. 

Why this matters: European trade unions continue to beat the drum for union and collective bargaining “conditionality clauses” to be included in public sector tendering contracts. The European Commission is currently review the Directives that govern how contracts for public services are awarded to private providers. 

In awarding such contracts, the unions want priority to be given to undertakings that engage with unions and have collective bargaining agreements. As we have pointed out before, this would disadvantage the vast majority of private sector economic operators as only about 15% of workers in the private sector in Europe are in unions.

What might happen next: The Commission will likely maintain its focus on competitiveness when reviewing public procurement directives. Nonetheless, member companies, through their employer organisations and their public affairs units should make their views on this issue known to the European legislators now. 

ADDITIONAL INFORMATION:

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