Tensions and experimentation in setting,extending and enforcing working conditions: case studies of labour clauses in public procurement

Abstract

Labour clauses in public procurement, which require contractors to provide their employees with a certain minimum level of wages and working conditions, have garnered increased political and scholarly attention in recent years. However, much of the discussion has centred on legal provisions, with less consideration given to the intricacy of how these clauses are implemented and integrated within existing wage-setting systems. This article focuses on the implementation and enforcement of labour clauses and their interaction with collective bargaining systems in two countries, Denmark and Germany, which continue to rely relatively strongly on collective agreements. Drawing on four case studies, we explore the challenges that arise from the implementation of labour clauses, such as tensions between economic and social policy objectives and between state regulation and collective agreements. These cases underscore the importance of learning processes among public authorities and social partners in trying to address these tensions and ensuring decent working conditions in publicly procured work.