EU must end ‘race to the bottom’ contracts

The European Union must stop fuelling a race to the bottom in pay and working conditions by making public contracts dependent on respect for workers' rights.

Thousands of essential workers are mobilising in Brussels for a Uni Europa demonstration for a progressive reform of the EU public procurement directives.

Public procurement, or the contracting of private firms by public authorities to deliver goods and services, amounts to two trillion Euros - around 14% of the EU's GDP.

Lowest cost

Millions of workers are employed these contracts, and standards created through public procurement influence pay and working conditions throughout the private sector.

Currently most contracts are awarded based solely on the lowest cost, putting downward pressure on wages and working conditions.

European Commission President Ursula von der Leyen promised a revision of the public procurement directives as part of her political guidelines for the next term.

Speaking ahead of today's demonstration, ETUC General Secretary Esther Lynch said:

"The European Union's weak public procurement rules are driving a race to the bottom in pay and conditions.

"The people demonstrating in Brussels today are too often living in poverty despite doing essential work because public contracts are awarded based on cheapest cost alone.

"If companies want to win lucrative public contracts, they should have to act in the public interest.

"That means revising EU public procurement rules to ensure that public money goes to organisations that respect workers' rights and trade union rights, that negotiate with trade unions and whose workers are covered by collective agreements."

Notes

More information about the Uni Europa demonstration