GERMANY took a step nearer to protecting workers in supply chain companies when a new law on due diligence in supply chains had its first reading in the Bundestag, the German parliament, this week.

But unions said they are concerned that employers will attempt to block or dilute its proposals.

German unions have have been campaigning for a supply chain law to strengthen the human rights due diligence obligations of German companies.

With the German government now on the verge of passing this law, big business is attempting to undermine it.

Joerg Hofmann of the 2.5 million-strong IG Metall union said: “After a long struggle, and with the support of the trade union movement, we have succeeded in achieving a Bill that will oblige companies to take responsibility for what happens in their supply chains, making global trade fairer. If companies fail to meet their human rights obligations, trade unions and NGOs will be able to sue them in German courts.”

In February this year, a draft text of the law was published, which disappointed unions  as the new law will initially only cover companies with more than 3,000 employees.

A provision for a “safe harbours” standard that would allow companies to limit their liability by signing a global framework agreement with the relevant global union such as IndustriALL, the ITF or Uni was also not included.

Unions are mounting a defence of the law from attacks while calling for it to be strengthened. 

The existing text is a “minimum compromise,” and unions say any further weakening “will not be accepted.”

Unions says that the draft law only holds companies responsible for direct suppliers. 

However, it is often the indirect suppliers at the end of the supply chain who violate human rights most seriously.

The draft law does not provide for trade unions and German works councils to be involved in risk management within the company. 

It also makes no provision for the involvement of unions organising or representing affected parties in the supply chain.

German unions say that participation rights for unions should be strengthened, using global framework agreements as a positive example of social dialogue. 

The draft law also refers to “national law” in supplier countries when considering human rights. 

However, in some countries it is compatible with national law to restrict freedom of association and prevent trade union activity.

The president of the IGBCE chemical workers union, Michael Vassiliadis, said: “Many multinational companies accept workers’ rights and co-determination in Germany and Europe. 

“But when we point out problems in other countries, they reply that they do nothing there that is not mandatory. 

“Which is true, because in Asia or South America, for example, workers’ rights are not yet as developed, but universal human rights should apply worldwide.”

Unions are also calling for companies whose headquarters are not in Germany to be included in the new regulations if they have major operations in Germany.

Tony Burke is assistant general secretary of Unite.