PRESS RELEASE NO. 06/2021 IG Metall: Supply Chain Act is an important step toward decent work worldwide

Frankfurt am Main – IG Metall welcomes the fact that the German Supply Chain Act has finally been passed by the federal cabinet. Jörg Hofmann, First Chairman of IG Metall, commented: “The passage of the Supply Chain Act is an important next step toward decent and fair working conditions along global value chains. One thing is clear: The law is a compromise worked out after tough negotiations by Ministers Heil, Müller, and Altmaier—a compromise we appreciate, but one where we see a clear need for improvements if the requirement to comply with labor and environmental standards in supply chains is to have a real chance of success.” It is therefore important that the law be strengthened during the parliamentary process and not further watered down. In particular, the CDU/CSU parliamentary group now has a responsibility not to allow its social and human rights values to be watered down by lobbying efforts.

In IG Metall’s view, companies should not wait until the law takes effect in 2023. Rather, they should already be working with works councils to expand risk management to include the protection of human rights and to adapt preventive and remedial measures.

Wolfgang Lemb, executive board member of IG Metall, adds that the union will strongly advocate during the parliamentary process now beginning to close the gaps left by the current draft bill. For example, he says, the distinction between direct and indirect suppliers, as well as the differing requirements for risk management, is unacceptable. “It is precisely in the more complex parts of the supply chain that the worst human rights violations occur,” says Lemb, who is responsible for globalization issues, among other things, in his role.

Furthermore, he emphasized that the issues of union-busting and restrictions on freedom of association must be brought to the forefront of the regulatory framework. “The obstruction of union activities on the ground poses a threat to life and limb. This applies both to the life-threatening conditions for workers, as denounced by union members, and to the lives of these union members, which are then often threatened.

“If, due to opposition, it is not possible to include civil liability in the law,” Lemb continued, “then it is essential to guarantee an effective complaint mechanism, functioning regulatory oversight, and the participation of affected stakeholders, so that the law does not ultimately become a paper tiger.”

Further information and press photos of Jörg Hofmann

Further information and press photos of Wolfgang Lemb