Labour Standards in Public Procurement. Background paper for DFID Labour Standards and Poverty Reduction Forum

This paper was produced for the DFID Labour Standards and Poverty Reduction Forum. It identifies various practical possibilities for incorporating support for labour standards within public procurement. These findings are based on OGC guidance and on existing action by government departments and the private sector initiatives. Public procurement is governed by EU rules, principally the EU Treaty and EU Public Procurement Directive 2004 which are intended to assure free movement of goods and services and non-discrimination against contractors on grounds of nationality. However, in some cases, the possibility for including labour standards depends on circumstances and on how the process is undertaken, rather than there being a clear universal answer. There are varying interpretations of what is feasible under EU rules. This paper also looks at opportunities beyond individual contractual relationships. Many organisations concerned with ethical trade are seeking to work collaboratively with suppliers and communities to deal with some or the fundamental issues leading to poor labour practices. The opportunities to promote labour standards through public procurement, discussed in the paper include: - Mapping the Supply Chain and Prioritising - Promoting general support for labour standards - Including labour standards in product specification - Excluding contractors for labour standard violations - Evaluating tenders using labour standard criteria - Including labour standards performance in contract management conditions - Monitoring contractual performance conditions - Collaborative working