Germany’s government has postponed a cabinet meeting on the proposed Supply Chain Act, which was scheduled to take place this week and, if passed, would require companies to ensure that the rights of workers and communities in their supply chains are respected.
The law, which would force companies to ensure human rights and social minimum standards are met in their supply chains, had been introduced by federal ministers Gerd Muller and Hubertus Heil after they said companies were failing to be accountable for their human rights responsibilities under a voluntary approach.
It had been backed by the European Outdoor Group last month, despite coming under resistance from Textil+Mode, also known as The Association of the German Textile and Fashion Industry, which criticised the move saying it would weaken small and medium-sized enterprises in their competitiveness.
Human Rights Watch has revealed the Federal Ministry for Economic Affairs and Energy (BMWi) blocked the law, which means the cabinet is now scheduled to meet on 9 September.
The campaign group says the BMWi is calling for a law that would apply to very few companies (only those with 5,000 or more employees) and fail to require companies to take environmental measures or hold the companies liable adding “it would be a toothless tiger.”
“It is hoped that the BMWi will have changed its position by then. Passing a robust supply chains law in Germany would signal that in the world’s fourth-largest economy, the human rights of people at the bottom of supply chains count,” HRW said in a comment on its website.
