Diversity as job quality: toward the inclusion of trade unions in public procurement of social services

Purpose: When union representatives are included in government procurement procedures for contracting-out of social welfare services, organizational diversity is enhanced if the job quality parameter, as reflected in the contract, is improved. Asking how unions are treated in government procurement procedures, this paper discusses an approach to diversity management based on the inclusion of unions. Design/methodology/approach: As part of a broader research project, interviews were conducted with six budget administrators and 16 occupational standards administrators employed by the Israeli ministries of Welfare, Education and Health; and with eight trade union activists. Grounded theory was applied for data analysis, revealing meanings of “trade unions” and “job quality.” Findings: Budgeting administrators manifested diversity resistance by means of only partially supporting trade union demands to enhance job quality. Their power position enabled them to prioritize the profit imperative of service providers; the diverse labor force operating the contracted-out service were consequently denied the ostensible benefits of workplace diversity. Practical implications: Unionization, and trade union participation in social welfare procurement processes, is a potentially effective path to improving job quality and enhancing workplace diversity. However, more must be done to develop the institutional-level processes that will ensure that this potential is utilized to the full. Social implications: Including trade unions in social welfare procurement processes is a potentially effective path to improving job quality and enhancing workplace diversity. However, specific actions are required to develop the willingness of budgeting administrators to recognize the association between union participation, job quality and the acknowledged benefit of promoting organizational diversity. Originality/value: An institutional work perspective was used to detail how budgeting administrators involved in public procurement processes resisted diversity by undermining trade union action for job quality. By identifying three social processes deployed to side-track trade union campaigns for improved job quality, this research shows how the power struggle between budgeting administrators and union representatives ultimately undermines workplace diversity.