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In its previous observation, the Committee noted Act No. 8883 of 8 June 1994 and Normative Instructions of the Secretariat for the Federal Administration (SAF) No. 8 of 26 August 1994, and No. 13 of 21 October 1994, relating to standards on public administration tenders and contracts. It noted that the provision of section 44, paragraph 3, of Act No. 8666 of 21 June 1993, as amended by Act No. 8883, is still maintained, according to which a contract proposal can be accepted only if the overall or partial sums it contains are compatible with the prices of inputs and market wages. It further noted that Normative Instruction No. 8 includes provisions that the cost of labour remuneration in a contract proposal should refer to the remuneration fixed for the occupational category by collective labour agreements or other equivalent, including wages and other advantages established in labour legislation. The Committee considered that these provisions serve the purpose of ensuring to the workers employed by public contractors that the level of wages is not less favourable than the prevailing market wage.

The Committee however pointed out that the requirements of Article 2, paragraphs 1 and 2, of the Convention relate not only to the level of wages but also to the labour conditions such as hours of work and holidays. It therefore requested the Government to indicate the measures taken or envisaged to ensure that the workers concerned also enjoy labour conditions other than wages that are not less favourable than normally observed for a similar kind of work in the district.

The Committee notes that further information has been supplied by the Government concerning the efforts to regulate certain aspects of public contractors, for example regarding social security. The Government also mentions fringe benefits such as transport coupons and food tickets to be provided by public contractors engaged by the Federal Administration for cleaning and security guard services. The Committee notes, however, that such measures are not sufficient to fulfil the above-mentioned requirement of the Convention. It again recalls that the Convention stipulates, for this purpose, the insertion of appropriate labour clauses in public contracts, and suggests that the Government consider consulting the International Labour Office on further necessary steps to apply the Convention in this respect.

The Committee also requests the Government to supply information on the application of the Convention in practice, including, for instance, extracts from official reports, and cases in which tenders for public contracts have been refused because of the incompatibility of the calculated cost with market wages, under section 44, paragraph 3, of Act No. 8666.