Ergon recently wrote a background paper for the DFID Labour Standards and Poverty Reduction Forum, looking at the potential for public procurement agencies to address labour standards in value chains supplying the UK public sector. The paper identifies various practical possibilities for incorporating support for labour standards within public procurement.
To read the report, click here.

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. The Office of Government Commerce (OGC) has issued guidance on incorporating social issues in UK public procurement which identifies various stages of the procurement cycle and where there are opportunities to promote labour standards. 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.

The DFID 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.