Companies that negotiate pay and working conditions with trade unions may be given preference when public contracts are awarded, the EU’s top court confirmed on Monday.
The Court of Justice of the European Union ruled that including social criteria – such as the promotion of collective bargaining – in public procurement procedures is compatible with Article 67 of the EU Public Procurement Directive, which concerns the most economically advantageous tender.
The court also stated that working conditions are an integral part of the performance of a public contract, meaning that contracting authorities may award contracts based on more favourable working conditions than those set out in sectoral collective agreements.
Luxembourg’s trade union federations, the Independent Trade Union Confederation of Luxembourg (OGBL) and the Luxembourg Confederation of Christian Trade Unions (LCGB), welcomed the ruling in a press release on Monday morning.
The verdict comes at a particularly relevant moment, as discussions are currently underway in Luxembourg on implementing the EU directive on minimum wages and collective bargaining.
