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over the world and will cover a great many enterprises and workers employed therein.
The challenge of this method is the relatively weak mechanism of the agreement’s

implementation. The basic means to address situations where agreed principles are not
applied is only consultation among the parties, in most cases.

(5) Public Contracts

ILO Convention No.94 of 1949 on Labour Clauses in Public Contracts embodies
the idea of trying to practically enforce application of ILS by making use of the leverage
of public contracts or public procurement. It is the same idea which lies behind the

supply chain management, in that the conditions set by the procurer have the same
effects for the recipients of the contracts as if the conditions were laws. The objectives
of the use of public contracts are explained to be twofold: “First, to remove labour costs

being used as an element of competition among bidders for public contracts, by requiring
that all bidders respect as a minimum certain locally established standards. Second, to
ensure that public contracts do not exert a downward pressure on wages and working

conditions, by placing a standard clause in the public contract to the effect that workers
employed to execute the contract shall receive wages and shall enjoy working conditions

that are not less favourable than those established for the same work in the area where
the work is being done by collective agreement, arbitration award or national laws and
regulations.” 27

An interesting example can be given in an “international” public contract, in
the sense that the procurer is a UN agency. FAO in its Food-for-Work program introduced

a sort of public contract technique. In Para. 6.4 of the Guidelines for Public Works
Programmes: Cash-, Voucher- and Food-for-Work, FAO covers compliance with national
labour norms by stating: “If the country in which FAO is implementing public works

activities has no labour standards or their enforcement is limited, FAO needs to include
appropriate clauses in the contract and ensure that they are enforced. These clauses

should set the labour standards for the activity, including maximum hours of work per

27 General Survey of the Committee of Experts on the Application of Conventions and Recommendations
concerning the Labour Clauses (Public Contracts) Convention, 1949 (No. 94) and Recommendation (No. 84),
International Labour Conference 97th Session, 2008 Report III (Part 1B), 2008, p. xiii.

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