PRESS STATEMENT Supply Chains: More Say for Employees

Christiane Benner, Second Chair of IG Metall: “The Supply Chain Due Diligence Act is a good start to the new year. Starting January 1, companies must take real responsibility for their supply chains. This means consistently fulfilling human rights and environmental due diligence obligations, and it’s good news for all workers. This makes the employers’ resistance all the more difficult to understand, as they tried until the very last moment to prevent the law from taking effect.

Particularly welcome in the Supply Chain Due Diligence Act is the opportunity to identify risks and implement countermeasures through co-determination. This creates a key area of action for works councils, one that also extends to the European and global levels. More co-determination in the business sector is the right path—hopefully, this start to 2023 is a good omen for co-determination throughout the year!”

Wolfgang Lemb, Executive Board Member of IG Metall: “The Supply Chain Due Diligence Act is an important step toward ensuring that companies operate more sustainably in the future. Modern-day slavery and other human rights violations are not rare occurrences but are currently part of many supply chains. The International Labour Organization (ILO) estimates that 60 percent of the global working population lacks labor or social protections. The Supply Chain Due Diligence Act, which will soon come into force, is therefore long overdue. Until now, employee representatives have had too little say in monitoring supply chains within companies—that can and must change now.”

Background: At the heart of the new requirements is the obligation for companies with at least 3,000 employees to establish an appropriate and effective risk management system. Furthermore, it will become mandatory to set up an internal company complaint procedure through which potential risks and human rights violations in the supply chain can be reported while maintaining confidentiality. In Germany, this affects approximately 200 companies in the metal and electrical industries, as well as in other sectors organized by IG Metall, with a total of 2.42 million employees.

Further information and press photos of Christiane Benner 

Further information and press photos of Wolfgang Lemb