Labour Clauses (Public Contracts) Convention, 1949 (No. 94) - Denmark (Ratification: 1955)

Replies received to the issues raised in a direct request which do not give rise to further comments (CEACR) - adopted 2022, published 111st ILC session (2023)

The Committee notes the information provided by the Government, which answers the points raised in its previous direct request and has no further matters to raise in this regard.

Direct Request (CEACR) - adopted 2016, published 106th ILC session (2017)

Article 1 of the Convention. Scope of application. The Committee notes with interest the information provided by the Government indicating that the amended Circular on Labour Clauses in Public Contracts, which came into force on 1 July 2014, aims to encourage and increase the use of labour clauses in public contracts. The Government indicates that companies that are wholly owned by central authorities and are not part of any competition process are also required to apply labour clauses in contracts for work in the areas of construction and civil engineering. The amendments also call for all local councils and regional authorities to apply labour clauses in contracts for construction and civil engineering works, regardless of the amount of the contract and, where appropriate, also in contracts in other areas of work.

Article 2. Labour clauses in law and practice. Application of the Convention in practice. The Government indicates that the amended Circular provides that the contracting authority is required to set requirements in the contract to ensure that workers employed by contractors, as well as by any subcontractors who contribute to the performance of the contract, are entitled to pay (including special allowances), hours of work, and other working conditions that are not less favourable than those established for work of the same character under a collective agreement entered into by the most representative employers’ and workers’ organizations in Denmark in the trade or industry concerned. The Committee notes that the amended Circular also requires the contract to stipulate that the contractor and any subcontractors must ensure that their workers receive information of the working conditions established in these labour clauses. The Committee further notes that, in response to its previous comments, the Government refers to its Action Plan for Corporate Social Responsibility (CSR) “Responsible Growth” 2012–15, through which it encourages public procurers to increase the demand for goods and services produced under responsible conditions. In order to promote socially responsible public procurement (SRPP), the Government developed common public guidelines which led to the development of an online web tool, “the Responsible Purchaser”, in 2013. The tool is based on an analysis which mapped the use of CSR requirements in public purchasing, and provides recommendations and guidance as to the tools and information that public and private purchasers alike should use in order to undertake procurement processes in a consistent and socially responsible manner. The Responsible Purchaser contains a step-by-step guide, is intended for use in many different situations, and contains a number of examples. The Government indicates that to promote SRPP it also developed an annex, based on international guidelines, for standard contracts on CSR that may be included whenever the public sector contracts for the purchase of goods or services. The Committee welcomes the information provided by the Government and requests that it continue to provide information on the implementation of the Action Plan for CSR, the impact of the SRPP web tool and on the general manner in which the Convention is applied, including, for instance, extracts from official reports, including labour inspection reports, indicating the number of inspections of public administration contracts carried out, the number and type of infringements detected and sanctions imposed. Please also provide information on any practical difficulties encountered in the application of the Convention.

Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

Article 2 of the Convention and Part V of the report form. Use of labour clauses in law and practice. Further to its previous comment, the Committee notes the Government's reference to the Action Plan for Corporate Responsibility (CSR) of 2008 as being the main strategy document on socially responsible public procurement (SRPP). The Government indicates that the CSR Action Plan is targeted at the State and state-owned limited companies as purchasers seeking to ensure that they do not procure products or services on conditions that conflict with the Conventions on which the UN Global Compact principles are founded. The Action Plan consists of 30 initiatives, including the establishment of the Danish Council on Corporate Social Responsibility. The Government further indicates that, in November 2010, the Council presented its recommendations on how to make further progress on CSR and a new Action Plan. Among the various recommendations, the Council suggested a strategic approach to CSR to support the business case for CSR as well as respect of international recognized principles, conducting a series of pilots on CSR and of SRPP in the public sector, and cooperation between the State, regions and local authorities towards a common handbook on SRPP. Moreover, the Government indicates that, in 2012, it intends to take stock of the work done under the 2008 CSR Action Plan. The Committee would be grateful if the Government would continue to provide an updated account on all future activities, including the new CSR Action Plan, copies of the pilot SRPP studies in the public sector and the handbook on SRPP, as well as on any other good governance initiatives and experiences aimed at promoting fair labour practices in public contracting.

Direct Request (CEACR) - adopted 2008, published 98th ILC session (2009)

Article 2 of the Convention and Part V of the report form. Use of labour clauses in law and practice. The Committee notes the information provided by the Government in its report and the attached documents. It notes in particular the Government’s indication that according to Local Government Denmark (LGDK), which is the association of the country’s 98 municipalities, there is increasing awareness among municipal authorities about the use of labour clauses. It also notes that the Government reaffirms that the Convention continues to be implemented through Circular letter No. 114 of 18 May 1966, read in conjunction with Circular letter No. 114 of 25 June 1990, both of which make specific reference to Article 2 of the Convention. Finally, the Committee notes the sample copies of labour clauses in tender documents currently in use which give full effect to the basic requirement of the Convention. The Committee would appreciate if the Government would provide in its next report a broad overview of its policies and practices concerning the incorporation of social criteria into public contracting, thus not limited to so-called “fair wages” clauses but also including “affirmative action” clauses, in light of relevant EU law. It would also appreciate if the Government would continue to transmit up to date information on the practical application of the Convention including, for instance, statistics on the number of public contracts awarded and the approximate number of workers engaged in their execution, copies of official reports or studies addressing the social dimension of public procurement (e.g. annual reports of the Danish Competition Authority), any difficulties encountered in the application of the Convention, especially with relation to posted foreign workers, extracts from reports of inspection services, etc.

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.

Direct Request (CEACR) - adopted 2006, published 96th ILC session (2007)

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 adoption of Act No. 933 of 15 December 1999 on posting of workers which implements the European Parliament and Council Directive 96/71/EC concerning the posting of workers in the framework of provision of services.

With reference to its previous direct request, the Committee notes the Government’s reply to the effect that the Ministry of Labour may recommend, but not instruct, municipalities and counties to insert labour clauses in contracts concerning building and construction work. According to the Ministry of Labour, in the few cases in which counties have not inserted labour clauses, the employees would be protected by any collective agreement already concluded or by the social partners’ possibility of concluding a collective agreement, if required, by taking industrial action. Thus, the Ministry of Labour considers that there is no need for further action in this respect. However, the point raised by the Committee referred to the nationality of tenderers as a possible ground of exemption from the scope of the Convention, which would go beyond what the Convention provides in its Article 1(4), rather than to the extent to which the Convention is applied to contracts awarded by authorities other than central authorities in accordance with Article 1(2) of the Convention. The Committee would therefore appreciate receiving further clarifications on this point.

The Committee would be grateful if the Government would continue to provide detailed information on the application of the Convention in practice, including copies of public contracts containing labour clauses, extracts from official reports, information concerning the number of contracts and workers covered by the relevant legislation, and any other particulars bearing on the application and enforcement of the provisions of the Convention.

Direct Request (CEACR) - adopted 2001, published 90th ILC session (2002)

The Committee notes the information contained in the Government’s report, and in particular the adoption of Act No. 933 of 15 December 1999 on posting of workers which implements the European Parliament and Council Directive 96/71/EC concerning the posting of workers in the framework of provision of services.

With reference to its previous direct request, the Committee notes the Government’s reply to the effect that the Ministry of Labour may recommend, but not instruct, municipalities and counties to insert labour clauses in contracts concerning building and construction work. According to the Ministry of Labour, in the few cases in which counties have not inserted labour clauses, the employees would be protected by any collective agreement already concluded or by the social partners’ possibility of concluding a collective agreement, if required, by taking industrial action. Thus, the Ministry of Labour considers that there is no need for further action in this respect. However, the point raised by the Committee referred to the nationality of tenderers as a possible ground of exemption from the scope of the Convention, which would go beyond what the Convention provides in its Article 1(4), rather than to the extent to which the Convention is applied to contracts awarded by authorities other than central authorities in accordance with Article 1(2) of the Convention. The Committee would therefore appreciate receiving further clarifications on this point.

The Committee would be grateful if the Government would continue to provide detailed information on the application of the Convention in practice, including copies of public contracts containing labour clauses, extracts from official reports, information concerning the number of contracts and workers covered by the relevant legislation, and any other particulars bearing on the application and enforcement of the provisions of the Convention.

Direct Request (CEACR) - adopted 2000, published 89th ILC session (2001)

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 reads as follows:

The Committee notes with interest the information on the practical application of the Convention by the counties (Article 1(2) of the Convention).

The Committee notes the Government’s statement that, in certain cases where only Danish contractors have submitted tenders after publication in the Official Journal, some counties have not inserted labour clauses in the public contract. The Committee recalls that the possible exemption from the application of this Convention is limited to contracts involving the expenditure of public funds of an amount not exceeding a limit fixed by the competent authority after consultation with the organizations of employers and workers concerned (Article 1(4)), and that the nationality of tenderers should not be a basis for the exclusion from the scope of this Convention. The Committee would be grateful to the Government for stating whether the cases mentioned above relate to the exemption under Article 1(4) and, if not, whether it intends to take measures to extend the application of the Convention in such cases.

Direct Request (CEACR) - adopted 1995, published 82nd ILC session (1995)

The Committee notes with interest the information on the practical application of the Convention by the counties (Article 1(2) of the Convention).

The Committee notes the Government's statement that, in certain cases where only Danish contractors have submitted tenders after publication in the Official Journal, some counties have not inserted labour clauses in the public contract. The Committee recalls that the possible exemption from the application of this Convention is limited to contracts involving the expenditure of public funds of an amount not exceeding a limit fixed by the competent authority after consultation with the organizations of employers and workers concerned (Article 1(4)), and that the nationality of tenderers should not be a basis for the exclusion from the scope of this Convention. The Committee would be grateful to the Government for stating whether the cases mentioned above relate to the exemption under Article 1(4) and, if not, whether it intends to take measures to extend the application of the Convention in such cases.

Direct Request (CEACR) - adopted 1991, published 78th ILC session (1991)

The Committee notes with interest that the Ministry of Labour has in agreement with the National Association of County Authorities and the National Associations of Municipal Authorities sent out Circular No. 115 of 27 June 1990 on labour clauses in public contracts in building and construction recommending that all municipalities and counties should include a labour clause in all contracts concerning public building and construction work in accordance with the guide-lines applying to public contracts under Circular No. 114 of May 1966.

The Committee would be glad if the Government would provide a general appreciation of the manner in which the Convention is applied under the new decisions, and if it would send further information giving, for instance, extracts from official reports, information concerning the number of contracts and workers covered by the relevant legislation, etc., and any other particulars bearing on the practical application of the Convention.