UNICE rejects the inclusion of social criteria in procurement

In a position paper issued in June 1998, UNICE underlined its opposition to the inclusion of social criteria in public procurement tenders. While all companies should respect legislation in this area, inclusion of such criteria in public tenders is considered as unnecessary interference.

Over recent years there has been a significant level of debate on public procurement policies, both those of the European Commission and those at national level. It has been argued from the trade union side that public tenders are often awarded to the lowest bidder, leading to reductions in the pay and conditions of employees. There is also perceived to be too little attention given to the social impact of contracting-out.

In a position paper issued on 17 June 1998, the Union of Industrial and Employers' Confederations of Europe (UNICE) expressed its belief that all companies, including suppliers to the public sector, must comply with the legislation applicable to them, including social legislation.

However, at the same time, UNICE is opposed to attempting to achieve social policy goals through the inclusion of social criteria in public procurement tenders. This is based on the belief that attempting to marry the goal of social cohesion through the promotion of employment and social protection, with the goal of fair competition between all suppliers in the internal market, would effectively jeopardise the achievement of either goal. UNICE therefore strongly rejects the inclusion of social criteria in public procurement tenders, and argues that public procurement should not be used as a tool, despite the importance of social considerations.