The Workers Group of the EESC welcomes EU Corporate sustainability due-diligence law: Preventing the exploitation of workers and children in global supply chains must be in focus!

After three postponements, the EU Commission finally presented a draft EU supply chain law today. The Workers Group of the EESC calls for better support for victims of human rights abuses, labour rights violations, and environmental damage.

Brussels, 23 February - With the EU Supply Chain Bill presented today, the EU Commission has finally set an important milestone to protect human rights including workers' rights as well as the environment along global supply chains. "The EU Supply Chain Act is an essential step to end the era of voluntary commitments. But to ensure that human rights abuses, exploitation of workers and children and the destruction of our environment are no longer the order of the day, the EU directive must not contain loopholes that allow the regulation to be undermined," warns Oliver Röpke, President of the Workers Group at EESC.  The EU supply chain law will apply to companies with 500 or more employees and an annual turnover of €150 million. Companies that meet these criteria will in the future have to implement human rights and environmental due diligence obligations. The directive covers the entire supply chain and all sectors. In high-risk sectors, such as the clothing industry and agriculture, the Supply Chain Act already applies from 250 employees and a turnover of 40 million euros. SMEs will therefore not be affected by the Supply Chain Act.

 "Thus, the EU Supply Chain Act will apply to less than 1% percent of the companies in the EU area. But the fact is: even companies that do not meet the specified criteria can be involved in human rights violations and exploitation of workers and children, as well as destroy our environment. Therefore, in the long term, we need measures that affect all companies," says Thomas Wagnsonner, Rapporteur of INT/911 - Mandatory due diligence.

  By anchoring civil liability, however, an essential demand could be achieved. Only civil liability can ensure that those affected by human rights violations, especially workers and children, who are exploited under inhumane working conditions in the Global South are also compensated. Mere punitive payments go to the state and are no remedy for those affected.

  "In order to ensure that human rights, workers rights and the environment in global supply chains are really protected in a sustainable and comprehensive manner, the EU Supply Chain Act needs to be extensively tightened up and apply comprehensively to all companies. Victims from the Global South must be given easy access to European courts in order to be able to enforce corresponding claims for damages, and ultimately, of course, all important stakeholders - such as trade union representatives and works councils - must be appropriately involved along the global supply chains in order to be able to fight social dumping effectively. For this we will advocate in the further process of the negotiations." emphasises Oliver Röpke.

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