A new model for sweatfree purchasing? Robert Stumberg Harrison Institute for Public Law June 5, 2012 Presentation to the

A new model for sweatfree purchasing? Presentation to the Rationale Labor standards Living wage Evaluation of bids

RationaleLabor standardsLiving wageEvaluation 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

RationaleLabor standardsLiving wageEvaluation of bids Focus on results Recognize 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 requirements and narrowly interpreted project work agreements

Flexibility Standards RationaleLabor standardsLiving wageEvaluation of bids Focus on results Recognize legal constraints Strike 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

RationaleLabor standardsLiving wageEvaluation 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.

RationaleLabor standardsLiving wageEvaluation 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

RationaleLabor standardsLiving wageEvaluation 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

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