Public procurement and human rights Tünde Tátrai Corvinus University of Budapest Rome, 05.07.2017.

Discrepancies Exclusion grounds and data protection Simplification Subcontractors and the modern slavery In the name of human rights…

Exclusion grounds and data protection Article 57 Exclusion grounds 1. (DIRECTIVE 2014/24/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 26 February 2014 on public procurement and repealing Directive 2004/18/EC) Contracting authorities shall exclude an economic operator from participation in a procurement procedure where they have established, by verifying in accordance with Articles 59, 60 and 61, or are otherwise aware that that economic operator has been the subject of a conviction by final judgment for one of the following reasons: (a) participation in a criminal organisation… (b) corruption … (c) fraud … (d) terrorist offences or offences linked to terrorist activities… (e) money laundering or terrorist financing… (f) child labour and other forms of trafficking in human beings… The obligation to exclude an economic operator shall also apply where the person convicted by final judgment is a member of the administrative, management or supervisory body of that economic operator or has powers of representation, decision or control therein.

Protection of personal data? Original aim Reality providing direct access to personal data for the contracting authorities in a general sense, or to oblige the persons concerned to give their consent to enable the contracting authority to have access to relevant information in relation to the grounds of exclusion self-declaration

Simplification National exclusion ground: Art. 62. 1. l) if a third-country national, whose employment is subject to an authorisation in Hungary, committed an infringement of the law established by the employment authority, on the basis of Article 7/A of the Act LXXV of 1996 on Labour Inspection, and was ordered to pay a given amount into the central budget or was ordered by the immigration authority to pay a fine for the protection of public policy pursuant to the Act on the Entry and Stay of Third-Country Nationals Evidence: Fine for public order offences www.kozrend.hu

Subcontractors and modern slavery High risk sectors: manufacturing, construction, agriculture, hospitality.. Short term contracts, informal employment practices Potential answer – limits on the length of subcontracting chains? Tight control of subcontracting/supply chains Additional administration (Craven R. (2014): The role of public procurement in the fight to eradicate modern slavery in the UK construction industry in (Edt) Piga.G., Tátrai T.: Public Procurement Policy)

In the name of human rights… “Human rights issues center around ensuring that suppliers maintain fair and humane working conditions and pay a reasonable wage to their workers” (Carter, C. and Jennings, M. (2002), “Social responsibility and supply chain relationships”, Transportation Research Part E: Logistics and Transportation Review, Vol. 38 No. 1, pp. 37-52.) Visiting suppliers’ plants to ensure that they are not using sweatshop labour Ensuring that suppliers comply with child labour laws Asking suppliers to pay a “living wage” greater than a country’s or region’s minimum wage (In Brammer, Stephen, and Helen Walker. "Sustainable procurement in the public sector: an international comparative study." International Journal of Operations & Production Management 31.4 (2011): 452-476.)

Protectionism or protecting human rights? The local minimum wage is compulsory for the freighter if the vehicle enters Austria, Germany, France or Italy. or C-115/14 Regio Post care

Supporting prisoners Prisoners right to work Obligation for hospitals to sign contracts with prisons Gov. Decree 44/2011.

Efficient spending of public money Supporting SMEs Supporting social considerations Fighting courruption Supporting environmental protection Easing up the fiscal crisis by slowing down public procurements Decreasing go-round debt Increasing employment Transparency Tátrai T., Nyikos Gy. (2012): Uses and Abuses of Public Procurement in. Albano et al. pp. 34.

Benchmarks, cases, guidelines, worst and best practices

Example Toolkit for child-labor free procurement Netherlands, Pianoo

Thank you for your attention! tunde.tatrai@uni-corvinus.hu