Marketization of refuse collection in Denmark: social and environmental quality jeopardized

Refuse collection has been the main public service to be outsourced in Denmark since the E.U. guidelines on public procurement came into force in 1993. The contracting activities of the municipalities are framed by a complex set of ideologies and objectives, in addition to regulations. At both EU level and at national level, the demands for marketization of the public sector are counterbalanced by demands for social and environmental considerations. The procurement directive reflects the balance legalizing the inclusion of such requirements by contracting. The Danish experiences, however, tell a grim tale of subordination of social requirements in municipal contracting practices with implications for the quality of the service. The results of a recent study of developments in the working conditions at commercial collection companies show deterioration in respect of health and safety, competence building and job security concurrent with the increase in outsourcing and competition in the sector. In the analysis of the results, a combination of municipal cost-saving strategies, harsh market forces and cultural influences are identified as causal factors. Drawing on a brief institutional analysis, it is concluded that the existing normative and regulative framework of municipal contracting needs reinforcement if societal intentions of qualified public services and acceptable working conditions are to be effective. Initiatives to simultaneously improve working conditions and environmental results of collection are called for.