European trade union organisations and European employers' organisations in the cleaning, catering, security and real estate sectors, food services, tourism and agriculture sectors have issued a joint statement calling for radical changes to EU public procurement rules. The statement is signed by FoodServiceEurope, EFCI, CoESS, EFFAT and UNI Europa Property Services. These are both employers' organisations and trade union organisations in Europe. Efling is a member of UNI Global Union, the international umbrella organisation of trade unions, of which UNI Europa is a part. The statement is a response to the ongoing review of the EU directive on public procurement rules and was submitted to the consultation process of the EU Commission at the end of January. With the statement, the organisations in question hope to try to influence future new EU legislation. Tendering at the expense of workers The statement paints a clear picture of serious weaknesses in the current regulatory framework. Public procurement, which is supposed to ensure quality and accountability in public services, is in fact too often based solely on choosing the lowest price. The result is fierce competition at the expense of workers, as companies compete to offer the lowest possible price for a project. Such offers are often far below the actual cost. According to data from the European Union, about two-thirds of public contracts of this type are without any conditions for social responsibility. This means that in the majority of cases, it is not guaranteed that companies that sign contracts with public entities respect collective agreements or offer decent working conditions. This weakens collective agreements and encourages dumping and poorer service. This development is well known in this country and directly affects Efling members. In cleaning, canteens and other services where wage costs are the largest expense item, competition in tenders has repeatedly led to downward pressure when it comes to wages and working conditions. The current regulatory framework simply encourages this. Would it have an impact on Iceland? If the suggestions presented in the statement are taken into account, it will be of significant importance to Efling members, due to Iceland's membership of the EEA Agreement. The European Union's rules on public procurement are part of the EEA acquis and therefore have a direct impact in this country. Changes that are approved within the EU in this area will therefore, in one way or another, find their way into Icelandic law. Developments in Europe thus shape the rules of the game that also apply to the Icelandic labor market environment. The statement points out that the lack of clear rules that inhibit "abnormally low bids" allows companies to bid below cost in order to win contracts. The only way for companies that receive such contracts to benefit is by reducing wages, even by violating the provisions of collective agreements, or by assigning tasks to far too few employees who work under unacceptable working conditions. It is also criticized that contracts often do not take into account wage increases, inflation or rising operating costs. Companies that have received the contracts in question therefore have only two options, they are forced to either absorb cost increases or cut back elsewhere. This primarily affects employees and the quality of service. The organization presents clear demands for changes. Conditions for participation in public tenders should be set such that companies respect collective agreements Bids should not be accepted solely on the basis of price Quality of service and working conditions of workers should be given greater weight when selecting bids A clear definition of what constitutes abnormally low bids should be set Ensure that agreements take into account wage increases and inflation The statement also emphasizes that increased dialogue should take place between public buyers and social partners before tenders begin, so that realistic conditions and quality of service can be ensured. The situation is serious What makes this statement particularly noteworthy is that it is a joint position of both unions and employers. Such consensus underlines how serious the situation has become. When both social partners are calling for the same changes, it is clear that the system is not working. For Efling these are key issues. The current arrangement in public tenders encourages dumping, weakens collective agreements and undermines the rights of members. Changes to the aforementioned tendering rules could, however, have a significant impact for the better, by strengthening workers' rights, improving working conditions and ensuring better and safer services for the public. The fight for fair tendering is therefore not just a technical issue within the European Union, but directly a wage issue for Efling members.