Procurement, Economic Policy, Denmark

(May 2017) The FOA public services union has called on MPs to reject the continuing demand on local government and health to deliver a 2% productivity increase each year. Effectively in force since 2003, it means that workers in the sector deliver 49% more services with the same staff. The union argues that there is a limit to what can be done and that services cannot be permanently streamlined without posing a threat to quality. The union points out that while health workers have been delivering a 2.4% productivity increase each year the private sector has managed only 1%.

(May 2017) Around 200 workers and the 1100 people they provide care for are the latest victims of private care company bankruptices. The collapse of Hjemmehjælpen Aarhus, the largest private care company in Aarhus, Denmark's second city, is the third private care company bankruptcy in May and the 41st since 2013 when a new tendering system was introduced. The FOA public service union is calling for a change to the system with requirements to monitor professional and management skills, company finances and to protect working conditions.

(March 2017) The FOA public services union has called for action to stop low cost bids for social care contracts require quality provision in the tenders. The union reports one recent example where municipalities have chosen a bid from a private company that involves DKK 10,000 less spending per client. The union argues that the situation has lead to bankruptcies as companies realise they can't meet the contract. This impacts on workers' jobs and is a challenge for FOA to ensure private companies sign up to the sector collective agreement.