New EU Directives on Public Procurement

In April 2014, three new EU Directives came into force at EU level, all affecting outsourcing. In particular, paragraph 37 of the new Directive on Public Procurement (2014/24/EU), requires member states to take measures to ensure compliance with national and EU labour laws and collective agreements in the context of outsourcing. The Directives must be implemented by the UK government by April 2016.

Unions see public procurement powers as a key strand in the campaign against the insecure employment that spreads as a result of uncontrolled outsourcing. Procurement can be used to impose minimum standards on service providers, to promote collective bargaining and direct employment and to outlaw blacklisting. There have been significant successes in Scotland and Wales.