1. Public procurement and human rights
Tünde Tátrai
Corvinus University of Budapest
Rome,

2. Discrepancies Exclusion grounds and data protection Simplification
Subcontractors and the modern slavery
In the name of human rights…

3. Exclusion grounds and data protection
Article 57 Exclusion grounds 1. (DIRECTIVE 2014/24/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 26 February on public procurement and repealing Directive 2004/18/EC)
Contracting authorities shall exclude an economic operator from participation in a procurement procedure where they have established, by verifying in accordance with Articles 59, 60 and 61, or are otherwise aware that that economic operator has been the subject of a conviction by final judgment for one of the following reasons:
(a) participation in a criminal organisation…
(b) corruption …
(c) fraud …
(d) terrorist offences or offences linked to terrorist activities…
(e) money laundering or terrorist financing…
(f) child labour and other forms of trafficking in human beings…
The obligation to exclude an economic operator shall also apply where the person convicted by final judgment is a member of the administrative, management or supervisory body of that economic operator or has powers of representation, decision or control therein.

4. Protection of personal data?
Original aim
Reality
providing direct access to personal data for the contracting authorities in a general sense,
or to oblige the persons concerned to give their consent to enable the contracting authority to have access to relevant information in relation to the grounds of exclusion
self-declaration

5. Simplification National exclusion ground:
Art l) if a third-country national, whose employment is subject to an authorisation in Hungary, committed an infringement of the law established by the employment authority, on the basis of Article 7/A of the Act LXXV of on Labour Inspection, and was ordered to pay a given amount into the central budget or was ordered by the immigration authority to pay a fine for the protection of public policy pursuant to the Act on the Entry and Stay of Third-Country Nationals
Evidence: Fine for public order offences

6. Subcontractors and modern slavery
High risk sectors: manufacturing, construction, agriculture, hospitality..
Short term contracts, informal employment practices
Potential answer – limits on the length of subcontracting chains?
Tight control of subcontracting/supply chains
Additional administration
(Craven R. (2014): The role of public procurement in the fight to eradicate modern slavery in the UK construction industry in (Edt) Piga.G., Tátrai T.: Public Procurement Policy)

7. In the name of human rights…
“Human rights issues center around ensuring that suppliers maintain fair and humane working conditions and pay a reasonable wage to their workers”
(Carter, C. and Jennings, M. (2002), “Social responsibility and supply chain relationships”, Transportation Research Part E: Logistics and Transportation Review, Vol. 38 No. 1, pp )
Visiting suppliers’ plants to ensure that they are not using sweatshop labour
Ensuring that suppliers comply with child labour laws
Asking suppliers to pay a “living wage” greater than a country’s or region’s minimum wage
(In Brammer, Stephen, and Helen Walker. "Sustainable procurement in the public sector: an international comparative study." International Journal of Operations & Production Management 31.4 (2011): )

8. Protectionism or protecting human rights?
The local minimum wage is compulsory for the freighter if the vehicle enters Austria, Germany, France or Italy. or
C-115/14 Regio Post care

9. Supporting prisoners Prisoners right to work
Obligation for hospitals to sign contracts with prisons
Gov. Decree 44/2011.

10. Efficient spending of public money
Supporting SMEs
Supporting social considerations
Fighting courruption
Supporting environmental protection
Easing up the fiscal crisis by slowing down public procurements
Decreasing go-round debt
Increasing employment
Transparency
Tátrai T., Nyikos Gy. (2012): Uses and Abuses of Public Procurement in. Albano et al. pp. 34.

11. Benchmarks, cases, guidelines, worst and best practices

12. Example
Toolkit for child-labor free procurement
Netherlands, Pianoo

13. Thank you for your attention!