a new model for sweatfree purchasing? robert stumberg harrison institute for public law...

A new model for sweatfree purchasing?Robert StumbergHarrison Institute for Public Lawstumberg@law.georgetown.edu

June 5, 2012

Presentation to the

A new model for sweatfree purchasing?

Presentation to the

Rationale

Labor standards

Living wage

Evaluation of bids

Rationale Labor standards Living wage Evaluation of bids

Focus on results•Many policies mandate compliance

• Yet compliance is rare•SPC guidance reflects a shift

• to work with suppliers, not exclude them• incrementally build capacity down the supply chain

2008 2011

Rationale Labor standards Living wage Evaluation of bids

Focus on resultsRecognize legal constraints•Procurement law: award to lowest responsible bidder (LRB)•Local authority to amend varies widely•Few cities/counties have authority to deviate from LRB•Courts are guardians of taxpayer interests

New York courts have preempted:•sweatfree policy•apprenticeship preference•benefit requirementsand narrowly interpreted project work agreements

Flexibility

Standards

Rationale Labor standards Living wage Evaluation of bids

Focus on resultsRecognize legal constraintsStrike a new balance•Legally, focus on integrity of competitive bidding•Retain labor standards, but make them clear and manageable•Encourage flexible competition based on capacity

• Approach supply chain management as a distribution service• Seek information on capacity to manage• Reward incremental change

Rationale Labor standards Living wage Evaluation of bids

• Context• ILO core conventions apply to governments, not employers• ILO core standards are vague

• Shift - from vague to concrete• Approach

• Retain fundamental principles• Select specific examples from ILO compliance tools• Organize into subsets of intermediate standards

Specific Examples

Do not interfere with freedom of association

Do not interfere with worker organization

•Do not interfere with worker organization.

•Worker representatives have unlimited access.

Rationale Labor standards Living wage Evaluation of bids

• Context• Most jurisdictions don’t have authority• Most contractors don’t pay a living wage

• Shift - • From mandate to incentive

• Approach• Authorize rather than mandate• Use wage level as tie-breaker, which preserves competition• Use wage ladder to promote competition where there is

authority

Rationale Labor standards Living wage Evaluation of bids

• Context• Presently, burden is on government to prove non-compliance

• Shift• From certification to incentive to develop capacity

• Approach - standards to evaluate capacity• Awareness of domestic labor standards• Disclosure of capacity or a plan for compliance• Disclosure of wages

End