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ESA workers face a maze of non-compete clauses and service contracts


Despite all these changes, the contractors are still bound by the same stringent non-compete clauses.

While the original arrangement saw multiple workforce companies in competition for open ESA positions, service contracts are largely controlled by a single company that has won an agreement to supply a certain type of worker. Should the contracting company ever lose out to a competitor, the contractors employed under this agreement stand a higher risk of losing their jobs since the non-compete clauses prevent them from moving to the company with the winning bid unless they are released from these restrictions.

“[The non-compete] poses a huge risk to my career,” said Brian, an ESA contractor in Germany. “I will not be able to continue anywhere near ESA if my company doesn’t get the contract. It is extremely abusive.” He notes that, while ESA service contracts usually run for a period of five years, the employees usually have open-ended contracts with their workforce agencies and no limits on the application of the non-compete clauses.

Multiple contractors who have been made to switch to the service contract told Ars Technica that their day-to-day duties have not changed. They have, however, noticed that their rights have been reduced.

“I was told at one point that I couldn’t sign documents any more—things like meeting minutes, invoicing for milestones,” said James. “Previously, I was regularly signing approvals for invoices of several million euros. So, I told them, well, if I don’t need to sign things, that means I don’t need to go to [the relevant] meetings. But they said, no, you have to go there, you will review everything, and somebody else will sign for you.”

The service contractors, frequently highly educated and experienced experts, also report they aren’t given credit for their work, which limits their further career advancement. “Writing programmatic documents—white papers, strategies, statements of work—is a day-to-day business of a service contractor,” said Roger. “But nowhere in such a document you will find their names.”


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