Survey Reveals 80% of Europeans Oppose Public Contracts for Underpaying Companies

A recent Europe-wide survey has revealed a significant shift in public opinion regarding the criteria for awarding public contracts. The findings indicate that a vast majority of respondents believe that public funds should favor companies that provide fair wages and good working conditions, rather than solely opting for the lowest bidder.

Commissioned by UNI Europa, this survey, which was exclusively shared with the RedaktionsNetzwerk Deutschland (RND), highlights that 65% of participants prefer a mixed approach to awarding contracts, taking into account price, quality, environmental standards, and, most importantly, social criteria. The emphasis on social aspects underscores the demand for more equitable labor practices, with a notable preference for supporting local businesses.

Oliver Roethig, the regional secretary of UNI Europa, emphasized the importance of aligning public spending with high social and quality standards. He stated that taxpayer money should be utilized to create quality jobs rather than support companies that undermine fair competition and dismantle trade unions. Roethig advocates for prioritizing responsible employers who engage in collective bargaining when allocating public contracts.

Public procurement in Europe amounts to approximately EUR2.5 trillion annually, encompassing a wide range of services from construction to cleaning, and even the purchase of electronic equipment and security services. This economic significance, representing 16% of the Gross Domestic Product (GDP), has led unions to argue that implementing targeted criteria in procurement processes could elevate labor standards across the continent.

The survey further reveals that three-quarters of German respondents support favoring companies with collective agreements in public contract allocations. Additionally, over 80% express their desire to exclude companies that underpay employees or engage in anti-union practices. Roethig warned that there is a growing trend among companies in Europe adopting anti-union tactics reminiscent of those in the United States, underscoring the need for clear quality criteria to enhance working conditions for millions of service workers.

The European Parliament is expected to release an initial report on reform plans soon. In the coming week, Social Democrats and left-wing parties are set to bring this critical issue to the forefront of discussions within the EU Parliament.