A debate over how public procurement guidelines needs to be reformed and whether or not they need to embody social conditionalities resembling obligatory collective agreements clauses appears poised to maneuver from Berlin to Brussels within the upcoming months.
After the German SPD—the oldest staff’ social gathering in Europe—not too long ago misplaced two of three regional elections, its Secretary Normal, Kevin Kühnert, mentioned the group must develop into extra seen within the authorities coalition. It has usually been squeezed between its extra outspoken companions, the Greens and the pro-market liberal social gathering FDP.
Alongside a promised stabilisation of public pension ranges and retirement ages, for the SPD, this may imply lastly get certainly one of its remaining pet tasks from the coalition treaty over the end line:
In 2021, Germany’s three ruling events agreed to strengthen the place of commerce unions by encouraging extra companies to conclude collective agreements. Extra particularly, they checked out public procurement guidelines as a route to realize that.
For firms to take part in public tenders on the federal degree, the coalition agreed to make it obligatory to pay their staff’ wages bases on present collective agreements.
Three years on, nonetheless, the principles haven’t been applied but, and a number of other deadlines have been missed when the accountable Labour Minister, Hubertus Heil (SPD, S&D), wished to undertake the draft regulation.
Whereas the federal degree solely accounts for 12% of public procurement in Germany – extra particularly, 22% of public development tasks – a number of German Länder (states) have already got related legal guidelines.
Because the European Fee is contemplating revising its personal public procurement guidelines—which the director of the EU govt’s inside market unit, DG Develop, mentioned will probably be certainly one of her key upcoming duties—it will be nicely suggested to notice the sticking factors throughout the Berlin debate.
Regardless of the regulation having been years within the making, Finance Minister Christian Lindner (FDP, Renew)—who’s at present beneath elevated political strain as his social gathering missed the 5% parliamentary threshold in all three regional elections—mentioned final week that the regulation was “merely not prepared” to even be despatched to stakeholders for session.
Regardless of Lindner being “simply the cashier”, as German commerce union federation DGB’s Stefan Körzell not too long ago dubbed him, Lindner holds a de facto veto energy within the coalition as his FDP may stroll out of the coalition anytime, leaving SPD Chancellor Olaf Scholz and not using a majority.
A Finance Ministry supply instructed Euractiv on Tuesday (24 September) that the ministry wished to make sure that “bureaucratic hurdles are usually not elevated total”, specifically “given the [country’s] difficult financial scenario.”
However at a time when Brussels and Berlin are trying into the right way to reduce crimson tape and paperwork for firms, the regulation may deliver new reporting and documentation obligations, in keeping with business representatives.
“In precept, we’re fascinated about a regulation that ensures compliance with collective agreements for public contracts,” Tim-Oliver Müller, managing director of the principle affiliation of the German development business, instructed Euractiv.
Provided that the members of his affiliation have already got collective agreements in place and compete with firms that pay decrease wages, “their aggressive place could be improved” if collective agreements have been obligatory for all.
Nonetheless, Müller mentioned that “though the aim of honest competitors is the fitting one,” he fears that the brand new bureaucratic burdens may outweigh the advantages.
“In any case, such a regulation solely works whether it is carefully monitored,” he mentioned. “The ensuing paperwork additionally impacts the ‘good’ firms that already pay in keeping with collective agreements. That is the place the present proposal overshoots the mark.”
European commerce unions, in the meantime, “are trying carefully at what is going on in Germany,” Oliver Roethig, Regional Secretary of UNI Europa, the European federation of providers unions, instructed Euractiv.
At an illustration in Brussels subsequent week, UNI Europa desires to deliver 1,000 staff from cleansing, safety, and catering providers to Brussels to name for social conditionality clauses – like in Germany – to be made obligatory within the upcoming revision of the EU guidelines.
“At regional and native degree, we now have seen that legal guidelines requiring collective agreements for public contracts don’t result in extra, however much less paperwork,” Roethig mentioned. This was as a result of they “simplified present guidelines,” he argued, on condition that firms with collective agreements can simply show the working situations they fulfil.
Thus, Brussels can be taught two classes: First, it ought to make it simple for firms to show compliance with no matter goal it desires to incorporate in its new guidelines—resembling “choice” for EU-made merchandise and inexperienced merchandise, as outlined in Ursula von der Leyen’s political pointers.
And second, to organize for a protracted political battle.
Chart of the Week
Collective bargaining traditions fluctuate enormously throughout EU international locations.
In Germany, protection stands at 54%, beneath the EU common, and 14% decrease than in 2000, in keeping with the European Commerce Union Confederation (ETUC).
In response to the EU Minimal Wage Directive, EU international locations with a protection of beneath 80% have to current a plan to extend protection—one motive Germany desires to strengthen its public procurement guidelines.
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[Edited by Anna Brunetti/Alice Taylor-Braçe]
