The General Workers’ Union (GWU) has welcomed an important ruling delivered on 5th March 2026 by the Court of Justice of the European Union confirming that public authorities may include social criteria — including the promotion of collective bargaining — when awarding public contracts.
In its judgment, the Court clarified that working conditions form an integral part of the performance of a public contract and that contracting authorities may take such criteria into account when determining which tender represents the most economically advantageous offer.
This means that when public tenders are issued, price cannot remain the sole determining factor. The quality of employment, respect for workers’ rights and the existence of collective agreements may also be considered important elements in the contract award process.
Across the European Union, public procurement amounts to approximately €2 trillion annually. The ruling, therefore opens the door for these significant resources to also be used to promote higher labour standards and improved working conditions.
The GWU considers this decision an important step towards a public procurement system that values not only cost efficiency but also quality employment and social sustainability.
GWU Secretary General Josef Bugeja stated:
“This ruling clearly confirms that public funds should be used not only to purchase services or works, but also to improve labour standards. The Court of Justice has made it clear that public authorities may prioritise companies that respect collective bargaining and provide better working conditions. This represents an important step towards a fairer and more sustainable economy.”
The GWU believes that Malta should seize this opportunity to strengthen the use of social criteria in public procurement so that public funds also contribute to the creation of quality jobs and decent working conditions.
