(27 April 2005) The Swedish government has proposed to make it illegal to give public contracts to companies that have not signed collective agreements. Companies that do not respect this will not be selected for these public contracts. This is a possibility provide for in the European Public procurement directives but seldom used. The initiative follows the blockage of a Latvian contruction company that was building a school but refused to sign a Swedish collective agreement arguing it already had a Latvian one which offered lower pay and conditions. The Swedish unions blockaded the company Laval un Partneri Ltd's far building sites. In February 2005 the company had to abandon one of its building sites (Vaxholm) and Mid April the company filed for bankruptcy. EPSU and other unions have argued that the procedure in the procurement directives should be mandatory rather then voluntary, but which a Council majority did not follow.
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