Law linking Welsh Government contracts to fair working rules ‘in place by early 2026’ says Minister

Martin Shipton

Laws obliging firms bidding for Welsh Government contracts to abide by socially responsible procurement rules are expected to be in place by early 2026,  Social Partnership Minister Jack Sargeant has told TUC Cymru.

Speaking at an “Organise Now” event in Cardiff, Mr Sargeant listed what the Social Partnership and Public Procurement (Wales) Act was delivering.

He said: “One. The Act created a Social Partnership Council – a legally constituted Council composed of government, employers, and trade unions – with the role of providing advice and guidance to Ministers. Giving workers a very real and direct influence over government policy and decision-making.

“Two. It places a Social Partnership Duty on public bodies in Wales, not just to consult but to actively seek consensus or compromise with their recognised unions, when making strategic decisions about the objectives set by the Wellbeing and Future Generations Act. But what does this mean in reality? It is about giving those who deliver public services a stake in what those services look like, working to improve wellbeing in the workplace and public services more broadly – making a difference to our communities and our country.

“And three, the Act introduces new socially responsible procurement duties to help ensure that the almost £9bn that the Welsh public sector spends annually on goods, services and construction works supports our ambition to become a fair work nation.

“And although there is more work to do before we can bring these procurement duties into force, we are hoping to have some in force before Easter this year, with the rest in place by early 2026 at the latest.”

Duty

When the Act is fully implemented, a duty will be imposed on public bodies to source goods, services and materials in a socially responsible way. This includes labour, so sub-contractors and outsourced staff will no longer be able to be treated as a second-class workforce.

It also requires large public construction projects to provide employment opportunities for disadvantaged and marginalised groups. They must also deliver appropriate training, and ensure that employment rights, access to trade unions, and union representation are enforced and respected.

Mr Sargeant said the Act was already delivering successful outcomes: “Employers, unions and government have worked together successfully through the Social Care Fair Work Forum to implement the Real Living Wage in the sector and ensure our social care workforce have the dignity of earning a living wage.

“It is delivering in the Retail Sector, where social partnership has seen the establishment of a Retail Forum, a Retail Action Plan and commitment from Government, trade unions and employers to work collectively to address key issues facing the sector.

“Recently, we established the Workforce Rights and Responsibilities Forum, where our successful model of social partnership working will further its aims to improve collective understanding of workplace rights and responsibilities.

“In the Workforce Partnership Council, a partnership of trade unions, public sector employers and Welsh Government, Social Partnership has recently delivered a critical piece of guidance on the use of artificial intelligence across the public sector.

“The Act is not the only progress being made, we now have a UK Labour Government who only this week have reiterated their determination to introduce legislation that will mean the single biggest expansion in workers’ rights in a generation.

“We should however never feel comfortable that our work is done. Exploitative employers will continue to seek ways of circumnavigating our intentions and we should be forever vigilant and react to protect working people.

“What we are doing, and have been doing, in Cymru for many years, others are now following. Our workers are the heartbeat of our workforce and the future prosperity of our nation and while we must always be alive to challenges posed by those who wish to unpick or circumnavigate our good work – in unity we have the strength to overcome exploitation in all its guises.”

Historical context

Putting his contribution into an historical context, Mr Sargeant said: “I see my role as a continuation of our historic struggle for justice in the workplace. We have come so far from the arrest of the Tolpuddle Martyrs and the Combination Act to a bespoke piece of legislation enshrining social partnership in Wales.

“We have managed to make this progress because each and every one of us in this room stands on the shoulders of giants of the Labour movement. Across Wales thousands of workplace reps are doing important but unglamorous work that is the heartbeat of our movement, and one of the messages I want to give to you is how grateful I am to you for that hard work and dedication.

“I am proud of our ‘Welsh way’ of social partnership, not only because I am invested in this way of working but also because the trade union movement in Wales has been such a driving force behind it.

“Our ‘Welsh way’ places the worker’s voice at the very beginning of the decision-making process. It represents more than consultation – it ensures that the worker voice helps create solutions to problems, recognising that workers are experts in their own right.

“Social partnership working in Wales is not new, and the legislation does not limit how and where social partnership can be applied. In Wales, we have a long-standing and successful commitment to social partnership working – bringing together partners from government, employers, and trade unions to collaborate and co-produce solutions to joint problems.

“Reinforcing the importance of the worker voice will help improve work environments and culture, it will improve job security and satisfaction, it will support a more transparent way of working, and it will help cement the key role of trade unions in Wales.”