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

Labour Clauses (Public Contracts) Convention, 1949 (No. 94) - Singapore (Ratification: 1965)

Article 2 of the Convention. Insertion of labour clauses in public contracts. The Committee recalls its previous comment in which it noted the Government’s persistent failure to give effect to the provisions of the Convention in both law and practice, and requested the Government to take the necessary steps without further delay in order to effectively implement the provisions of the Convention. The Committee notes the Government’s reply that public contracts are awarded on the basis of “value for money” which refers not only to price but also to the quality and reliability of goods and services provided. Tenderers are also assessed in totality, taking into consideration their financial position, track records, including employment terms and conditions of their workers ensuring that workers’ well being is not undermined. The Government indicates, in this connection, that contractors engaged by the Singapore Ministry of Manpower are required to be part of the bizSAFE programme, which assists companies to manage workplace safety and health. The Government also indicates that it is exploring a debarment framework whereby egregious employers would be barred from tendering for public contracts.

While noting the Government’s explanations, the Committee considers, as it has pointed out in paragraph 308 of its 2008 General Survey on labour clauses in public contracts, that the objectives of the Convention are even more valid today that they were 60 years ago and strengthen the ILO’s call for fair globalization. The Convention seeks to promote good governance and socially responsible public procurement by requiring bidders/contractors to apply locally established prevailing pay and other working conditions as determined by law or collective agreement. The Convention proposes a common level playing field – in terms of labour standards – for all economic actors so as to ensure fair competition. By requiring all bidders to respect, as a minimum, certain locally established standards, wages, working time and working conditions may not be used as elements of competition and consequently no downward pressure on wages and working conditions may be exerted.

As for the possibility of screening tenderers through a debarment mechanism, the Committee wishes to refer to paragraphs 117–118 of the abovementioned General Survey in which it pointed out that the Convention does not relate to some general eligibility criteria of individuals or enterprises bidding for public contracts but requires a labour clause to be expressly included in the actual contract that is finally signed by the procuring entity and the selected contractor. Similarly, certification may offer some proof about tenderers' past performance and law-abiding conduct but carries no binding commitment with regard to prospective operations as labour clauses do. Noting therefore that national legislation appears to contain no provision implementing the requirements of this Article of the Convention (the Executive Resolution of 1952, which previously gave effect to the Convention, having probably fallen into desuetude), the Committee once more expresses the hope that the Government will take all necessary measures to put its legislation in line with the provisions of the Convention and asks it to keep the Office informed of any progress made in this regard.