Ann Arbor would establish labor standards for certain city purchases under an ordinance that cleared its first council vote Thursday, Nov. 5, according to the city’s legislative record.

The measure passed unanimously, according to WEMU.

A second reading is scheduled for Dec. 7.

Council Member Jen Eyer, who has championed the effort for years, framed the stakes plainly.

“The principle behind this ordinance is simple. Ann Arbor should not be spending taxpayer dollars on products made by workers who are exploited, denied basic rights, or forced to work in unsafe conditions,” Eyer said, according to WEMU.

What the ordinance requires

The ordinance covers certain contracts involving apparel, textiles, related equipment and laundry or distribution services. It sets a threshold of $50,000 or more for one-time purchases or use of covered goods. Vendors would have to comply with domestic labor laws in every country where they produce goods or provide covered services.

They would also have to respect five principles from the International Labor Organization’s (ILO) 1998 Declaration on Fundamental Principles and Rights at Work, as amended in 2022. Those principles cover freedom of association and collective bargaining, elimination of forced labor, abolition of child labor, elimination of workplace discrimination and safe working conditions.

Subcontractors must meet all five standards. Commodity suppliers face a narrower requirement: they must respect the principles on forced labor and child labor.

The proposal allows contractors to disclose that they or their subcontractors cannot yet meet the labor standards and submit a plan to achieve compliance. Contractors would have to implement and annually update those plans. If no bidder provides all required information, procurement staff could still consider the bids.

Contractors would not be expected to meet a living wage at the time of contracting. Instead, they would be expected to have a plan to reach one within a reasonable time frame and make a good-faith effort to carry it out. The city could use a tiebreaker or preference in bidding to favor the vendor reporting the highest wages.

For purchases under $50,000, the proposal directs staff to obtain covered goods from designated factories meeting worker-rights standards whenever possible.

Exceptions and oversight

Emergency purchases, contracts with other governments and situations where the ordinance conflicts with a grant agreement, law or regulation are exempt. Covered goods that are incidental to other purchases and make up less than 10% of a larger contract’s value are also excluded.

The ordinance recognizes that some city departments need specialized equipment where suppliers may be limited, according to the city’s accompanying memorandum.

A Sweatfree Procurement Advisory Group (SPAG) would help enforce the rules. The group can include procurement and finance experts, public employee union representatives and others with relevant expertise, according to the ordinance text. The city would also be required to join the Sweatfree Purchasing Consortium, a network of state and local governments that share supply-chain monitoring resources.

If adopted, the ordinance would take effect one year after final approval.

How the effort started

The City Council directed the city administrator to appoint SPAG through a 2024 resolution co-sponsored by Eyer and Council Members Harrison, Ghazi Edwin, Radina, Song and Disch. That resolution directed the group to review the city’s apparel vendors and their global supply chains for compliance with labor standards.

Several city departments buy uniforms, protective gear and other specialized work garments, the resolution noted.

The council’s second reading is scheduled for Dec. 7.