How Warsaw uses procurement to navigate the route from unemployment to job creation
Being a leader in sustainable procurement means to make decisions that add value to society. For a local government that means making decisions that take into account the well-being of its citizens. The City of Warsaw set itself the objective to increase employment opportunities for unemployed persons, people with disabilities and young people as well as to raise awareness of the possibilities to increase employment with public contracts as a tool.
In 2015, the city council put in place Order 1243/2015, which introduces mandatory application of social clauses in contracts above €30,000 in the following categories:
• Catering and catering services
• Care services
• Cleaning and home care service
• Winter and summer cleaning of streets and pavements
• Maintenance of green areas
• Construction works
The Order also recommends the use of social clauses in public procurement procedures for contracts with a value of less than €30,000, and for contracts with a value above €30,000 in categories other than the mandatory ones.
The application of social clauses in different public procurements from 1 October 2015 to 31 March 2019 has led to their use in 444 contracts with an overall value of nearly €1 billion.
For example, in 2016, the Urban Transport Authority of the City of Warsaw included a requirement in relation to the performance of a transport service contract. The winning contractor had to offer employment to 120 persons that were currently unemployed and were far from the labour market. They were offered jobs as drivers and dispatchers on full-time contracts. The contractor was also required to present employment contracts to the City of Warsaw in order to verify employment.
The contract was signed in February 2016 and the total value of the contract is €130 million for a duration of seven years, from 2016 to 2023.
Reflecting on the progress made, between the years 2016-2023, the overall awareness of opportunities for employment under public contracts has increased. Most importantly, overall employment has and will continue to increase. More than 16,500 people have been involved in the performance of contracts covered by social clauses on the basis of employment contracts.
Learn more about the city of Warsaw’s sustainable procurement approach and ambitions here. As a member of ICLEI’s Global Lead City Network on Sustainable Procurement, Warsaw is part of a select group of cities that lead on leveraging their purchasing power to do good for people and the planet.
Read more examples of socially responsible public procurement across Europe here.