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Article 2 of the Convention. Insertion of labour clauses in public contracts. The Committee notes the Government’s report and the attached “Instructions on Implementation of Government Contracts”, which were issued by the Ministry of Planning and Development Cooperation in 2008. It observes that, as indicated in the Government’s report, these instructions aim principally at ensuring fairness and transparency in all bidding procedures but bear little relevance to the core requirement of the Convention which is the pay and other working conditions applicable to workers engaged in the execution of public contracts. The Committee is therefore bound to conclude that no progress has been made with respect to the revision of procurement laws and regulations in order to give effect to the requirements of the Convention. The Committee recalls that the object and purpose of this Convention is not to promote fair, open and corruption-free public bidding procedures but rather to ensure that, by virtue of standard labour clauses inserted in public contracts, workers are entitled to wages, hours of work and other labour conditions at least as good as those normally observed for the kind of work in question in the area where the contract is executed, and that higher local standards, if any, apply. The Committee hopes that in the ongoing amendment process of the Labour Code, and following the recommendations of the Tripartite Consultation Committee, the Government will not fail to take the necessary steps in order to bring the national legislation at last into conformity with the Convention.
Article 2 of the Convention. Insertion of labour clauses into public contracts. The Committee notes that the Government admits that no labour clauses are inserted into public contracts, as required under this Article of the Convention, and recognizes the need to rectify this situation. In this regard, the Government indicates that the recently established Tripartite Consultation Committee has recommended the amendment of the provisions of the Labour Code relating to collective agreements. The Committee recalls that the Convention requires the insertion of labour clauses into public contracts to ensure that workers are entitled to wages, hours of work and other labour conditions at least as good as those normally observed for the kind of work in question in the area where the contract is executed, as well as to ensure that higher local standards, if any, apply. The Committee accordingly requests the Government to keep the Office informed of any progress made by the Tripartite Consultation Committee in supporting the amendment process of the Labour Code and to transmit a copy of the revised text as soon as it is adopted.
The Committee understands that Coalition Provisional Authority Order No. 87 of 14 May 2004 on public contracts regulates the bidding and award procedures of all procurement of goods, services and construction services, on the basis of transparency, predictability, fairness of treatment, anti-corruption and open competition. According to section 1 of the Order, public funds are to be committed, to the maximum extent practicable, in accordance with full, fair and open competitive public bidding procedures, including, effective tender publication, objective bid evaluation criteria, public bid opening and the use of electronic commerce methods. Under section 2(1) of the same Order, an Office of Government Public Contract Policy is established for the coordination of government public contract policy and the development and adoption of standard government public contract provisions. In addition, section 6(2) specifies that in preparing the implementing regulations, the Office of Government Public Contract Policy will be guided by recognized and accepted international standards and best practices, such as those contained in the United Nations Commission on International Trade Law (UNCITRAL), Model Law for Procurement of Goods, Construction, and Services, Directives of the European Union, and the World Trade Organization (WTO) Agreement on Government Procurement.
In this respect, the Committee regrets to note that both Order No. 87 of 2004 and the Coalition Provisional Authority Memorandum No. 4 of 19 August 2003 on contract grant procedures, are completely silent on social and labour matters related to the execution of public contracts. Therefore, the Committee asks the Government to re-examine its procurement practices and regulations with a view to giving full effect to the requirements of the Convention. The Committee hopes that more than 20 years after ratification, the Government will at last take appropriate action in order to bring the national legislation into conformity with the Convention. The Committee further requests the Government to specify whether the administrative instructions and regulations referred to in section 14(1) of Order No. 87 of 2004 have been adopted and, if so, to provide a copy of those instructions as well as copies of any standard public contract provisions, forms or documents which may have been issued by the Office of Government Public Contract Policy.
For all useful purposes, the Committee attaches herewith a copy of a Practical Guide, prepared by the Office principally on the basis of the General Survey of 2008 on Convention No. 94, to help better understand the requirements of the Convention and ultimately improve its application in law.
The Committee notes with regret that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:
The Committee notes the Government’s statement that Chapter 9 of Law No. 17 of 2000, containing the second amendment to Labour Code No. 71 of 1987, includes provisions respecting collective labour contracts. However, the Committee observes that Chapter 9, as amended, does not contain any provision requiring public contracts to include a clause establishing that the conditions of labour applicable in work of the same character shall also apply to workers engaged by enterprises which have public contracts.
Further to its previous comments, the Committee notes the Government’s repeated reference to Chapters III and IV of the Labour Code (Act No. 71 of 1987), which does not suffice for the application of Article 2 of the Convention. It also notes the Government’s indication that the authorities request a guarantee from contractors who employ workers that they will apply the provisions of the Labour Code relating to wages and other issues.
The Committee would point out that the requirement of the Convention is to ensure the insertion of a labour clause in public contracts covered by Article 1 so as to guarantee to the workers employed by the contractor, the prevailing labour conditions in accordance with Article 2. The principal aim of a labour clause is to protect fair conditions of labour from the consequences of competitive practice of tendering for a public contract. The Committee recalls that the protection provided through labour clauses in public contracts cannot normally be ensured only through the application of the general labour legislation. This is due first of all to the fact that there are many cases in which the minimum standards fixed by law are improved upon by means of collective bargaining or otherwise. Thus, even where labour legislation exists and is applied to public contractors, the insertion of labour clauses in public contracts can serve a very useful purpose in ensuring fair wages and conditions of labour for the workers concerned. Secondly, the provision of penalties, such as the withholding of contracts (which penalties are required by the Convention), makes it possible to impose sanctions in case of violations of the labour clauses in the public contracts which may be more directly effective than those applicable for contraventions of the general labour legislation.
In its previous comments, the Committee already noted that the Labour Code did not lay down the insertion of labour clauses in public contracts, as set out in Articles 1 and 2 of the Convention. It therefore points out the necessity to take measures to give effect to these Articles, and asks the Government to indicate any measures taken in this respect.
Meanwhile, the Committee noted the form of a contract attached to the Government’s previous report. It requested the Government to indicate the nature of contracts to which that form is applied and to supply a copy of any legislative, administrative or other instruments that lay down the usage of that form of contract. The Committee noted that the form stipulates that certain documents such as specifications, the form of offer, and the instructions to tenderers are considered as a part of the contract. In the absence of reply in this regard, the Committee again requests the Government to indicate whether any of the documents enumerated include provisions concerning the working conditions (including wages) of the workers concerned, and if so to supply a copy of such documents.
Finally, the Committee seizes this opportunity to refer to this year’s General Survey which contains an overview of public procurement practices and procedures in so far as labour conditions are concerned and makes a global assessment of the impact and present-day relevance of Convention No. 94.
The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:
The Committee notes the Government’s statement in its report that Chapter 9 of Law No. 17 of 2000, containing the second amendment to Labour Code No. 71 of 1987, includes provisions respecting collective labour contracts. However, the Committee observes that Chapter 9, as amended, does not contain any provision requiring public contracts to include a clause establishing that the conditions of labour applicable in work of the same character shall also apply to workers engaged by enterprises which have public contracts.
The Committee hopes that full particulars will be provided in the next report on the matters raised in its previous direct request, which reads as follows:
Further to its previous comments, the Committee notes the Government's repeated reference to Chapters III and IV of the Labour Code (Act No. 71 of 1987), which does not suffice for the application of Article 2 of the Convention. It also notes the Government's indication that the authorities request a guarantee from contractors who employ workers that they will apply the provisions of the Labour Code relating to wages and other issues.
Meanwhile, the Committee noted the form of a contract attached to the Government's previous report. It requested the Government to indicate the nature of contracts to which that form is applied and to supply a copy of any legislative, administrative or other instruments that lay down the usage of that form of contract. The Committee noted that the form stipulates that certain documents such as specifications, the form of offer, and the instructions to tenderers are considered as a part of the contract. In the absence of reply in this regard, the Committee again requests the Government to indicate whether any of the documents enumerated include provisions concerning the working conditions (including wages) of the workers concerned, and if so to supply a copy of such documents.
The Committee notes that the Government's report repeats the reference to the same provisions of the Labour Code and of the Act No. 52 of 1987 on Trade Union Organizations as in its previous report.
The Committee points out that the essential objective of the Convention is to ensure that, through the insertion of appropriate labour clauses in public contracts, the workers employed by a contractor and paid indirectly out of public funds enjoy wages and other conditions of labour which are not less favourable than those of other workers doing similar work. In its previous comments, the Committee already noted that the Labour Code did not lay down the insertion of labour clauses in public contracts, as set out in Articles 1 and 2 of the Convention.
The Committee, however, notes with interest the form of a contract attached to the Government's report. It requests the Government to indicate the nature of contracts to which this form is applied and to supply a copy of any legislative, administrative or other instruments that lay down the usage of this form of contract. The Committee notes that this form stipulates that certain documents such as specifications, the form of offer, and the instructions to tenderers are considered as a part of the contract. It requests the Government to indicate whether any of the documents enumerated include provisions concerning the working conditions (including wages) of the workers concerned, and if so to supply a copy of such documents.
The Committee notes that the Government's report contains no reply to its comments. It hopes that the next report will include full information on the matters raised in its previous direct request, which read as follows:
The Committee notes the Government's first report and requests it to supply additional information on the following points:
Articles 1 and 2 of the Convention. The Government indicates in its report that the application of the Convention to contracts involving the expenditure of public funds has not been the subject of any exceptions and that the Labour Code applies to contracts concluded between a public authority or its agents, on the one side, and workers, on the other. The Committee notes these indications. It observes, however, that the Labour Code does not contain any provisions covering public contracts as defined in Article 1 of the Convention, nor does it lay down that these contracts shall include clauses ensuring to the workers concerned wages (including allowances), hours of work and other conditions of labour which are not less favourable than those established for work of the same character in the trade or industry concerned in the same district, as set out in Article 2 of the Convention. The Committee therefore requests the Government to indicate: (a) the provisions which set out the terms of the clauses to be included in public contracts and any modifications to these terms; (b) whether the organisations of employers and workers concerned have been consulted in this respect; and (c) the measures that have been taken to enable persons tendering for contracts to be aware of the terms of the clauses (for example, through advertising the specific conditions applicable or any other measure), in accordance with paragraphs 3 and 4 of Article 2 of the Convention.
Article 4(a), (i) and (iii). By virtue of the provisions of the Convention, laws, regulations and other instruments giving effect to it must be brought to the notice of all persons concerned and must require the posting of notices in conspicuous places at the establishments and workplaces concerned with a view to informing the workers of their conditions of work. The Committee requests the Government to indicate the measures that have been taken or are envisaged to give effect to this provision, since the Labour Code contains no clauses to this effect.
Article 5, paragraph 1. This provision of the Convention provides that adequate sanctions shall be applied for failure to observe and apply the provisions of labour clauses in public contracts. The Committee requests the Government to indicate the sanctions that are imposed in such cases and the provisions under which they are imposed.
Point V of the report form on the Convention. The Committee requests the Government to supply information on how effect is given to the Convention in practice by providing, for example, extracts of official reports and information on the number of contracts and workers covered by such contracts, the number of violations, etc. (Please supply, where appropriate, copies of such contracts.)