Public Procurement : EPSU prepares for lobbying campaign

(5 September 2012) The EPSU Public Service Network held a meeting on public procurement and concessions, which was co-organised wih EPSU’s affiliate Ver.di. The report of the meeting is available here and more info on the EPSU’s work on procurement is available in this section.

There have been over 1400 amendments to the main public procurement directive (2012/0438(COD) and 850 amendments for the utilties directive (2012/0437(COD). EPSU members are urging MEPs to support amendments that meet our key concerns:
- Public procurement is an option, not an obligation. In keeping with subsidiarity principles public authorities – and especially local authorities - should enjoy wide discretion over the organisation and delivery of public services. They must be able to chose whether, how, and to what extent they want to perform public functions themselves and/or in cooperation with other public authorities, in keeping with Article 14 on Services of General Economic Interest (SGEI) and Protocol No 26 on SGI, which gives the EU and Member States a shared responsibility for “a high level of quality, safety and affordability, equal treatment and the promotion of universal access and of user rights” in public services.
- Transparency is a fundamental principle for public authorities, economic operators and citizens. Taxpayers have a right to see – and be able to evaluate - how their money is spent. The Directives must state clearly that the details of public contracts should be open to public scrutiny. Confidentiality requirements should not prevent the public disclosure of contracts, including any subsequent changes that are made to them. This implies too that there is effective information and consultation of workers involved when contracts are to be outsourced and explicit notification and compliance with responsibilities under the transfer of undertakings legislation.
- A Single Market needs a ‘level playing field’ in employment conditions. The Directives must ensure that social and employment protection as well as working conditions applying in the place where the work, service or supply is to be performed –and as set out by national legislation and /or collective agreements or international labour law provisions - are fully respected. Clear and consistent wording in the Directives on this is essential.
- EU law must respect – and further – international labour standards. The public procurement rules should support the promotion and implementation of a wide range of ILO Conventions. ILO Convention No 94 on labour clauses in public contracts is an important Convention to support quality employment and services. The Directives must recognise the right of any country to ratify C94 and encourage the inclusion of labour clauses in public contracts.
- The revised Directives should support competition on quality and sustainability, not on price. The award of public contracts should not be based on lowest cost criteria as this leads to a race to the bottom in terms quality of services/goods and in working conditions. Problems that result from uncontrolled sub-contracting need to be tackled in the Directives, including through the introduction of joint and several liability.

Discussion on the amendments will take place in the European Parliament over the next months (timetable to be confirmed) and EPSU will work closely within the ETUC and the broader Network for Sustainable Development in Public Procurement (NSDPP) to ensure the EP - and the Council positions - reflect our concerns.