EU Procurement Rules Lack Strong Human Rights Protections, Warns Swedish Watchdog

The European Union's latest overhaul of procurement regulations may fall short in safeguarding human rights and environmental standards, according to a warning from the Swedish watchdog, Swedwatch. The proposed changes, designed to streamline public spending and emphasize quality over cost, could inadvertently allow unscrupulous companies to win contracts by underbidding.

Concerns Over Human Rights Due Diligence

Swedwatch has expressed concerns that while the new Public Procurement Act includes positive measures—such as mandating that quality account for at least 30% of the evaluation score—there is a significant absence of explicit human rights due diligence requirements. This omission could lead to situations where suppliers with poor human rights records continue to secure contracts due to lower prices, potentially harming workers and communities linked to public-sector supply chains.

Impact of Current Procurement Practices

A recent report by Swedwatch highlighted troubling findings regarding public funds used for hospital textiles. The report found that many workers in Pakistan's textile industry, who are responsible for producing goods for European healthcare systems, earn far below the legal minimum wage and often lack basic employment rights and protections. “Public procurement should be a force for good, not a subsidy for abuse,” stated Sofia Käll, a program officer at Swedwatch.

The Need for Stronger Social Criteria

Swedwatch advocates for the enhancement of social criteria within the procurement process, arguing that the proposed “comply or explain” approach undermines the intent of the regulations by allowing low-cost bids to prevail without sufficient justification. The organization calls for greater transparency and accountability in supply chains to ensure that taxpayer money does not contribute to human rights violations or environmental degradation.

Source: wwd.com