Business associations are storming against the EU supply chain law, the FDP wants to prevent it. Many companies are in favor of a strong law.
A woman works in a textile factory. The churches have called on the government to approve the EU supply chain law Photo: Dominik Butzmann/laif
LEIPZIG taz | Shipping companies worth billions, a large German supermarket, a furniture giant, a pharmaceutical company, medium-sized clothing manufacturers from southern Germany – they all want politicians to regulate their supply chains: with a strong EU supply chain law.
That is remarkable. Because at the moment it seems as if the entire economy in Germany is up in arms against the law, which is intended to create uniform rules for the protection of human rights in the supply chains of larger companies. Too much bureaucracy, they say, an overburdening of small companies, the end of Europe as a business location.
Behind the fuss is a broad campaign by German business associations. In a joint letter to the Chancellor, the Federation of German Industries (BDI), the Confederation of German Employers’ Associations (BDA), the German Chamber of Commerce and Industry (DIHK) and the Central Association of German Crafts (ZDH) demanded not to agree to the planned law .
The law has been negotiated and only needs to be formally passed in February. But in the last few meters the FDP stands in the way, flanked by the loud voices of German associations.
Companies want strong laws
But if you ask around at companies, you will get a much more differentiated picture. medium-sized companies and large corporations in Germany and Europe are in favor of a strong law. The shipping companies Maersk and Hapag-Lloyd, for example, the consumer goods giant Unilever, the furniture giant Ikea, the discounter Aldi Süd, the mail order company Hess Natur, the clothing company S.Oliver and the outdoor manufacturer Vaude. In Denmark and in the Netherlands, large business associations have expressly welcomed a strong supply chain law – in complete contrast to their German partners.
In December, after several years of negotiations, the EU agreed on a relatively strict supply chain law. According to the directive, those affected by human rights violations can sue companies for damages under certain conditions. This is not possible under the German Supply Chain Act, which has been in force since the beginning of 2023.
FDP blocks
Justice Minister Buschmann from the FDP was involved in the negotiations – and yet the FDP is still trying to stop the law in the home stretch. If the FDP continues to stand in the way of the traffic light coalition, the federal government will have to abstain from the formal vote in the EU Council in February. If other countries then withdraw their consent, the law would have failed in the last few meters. The FDP is using the arguments of the business associations for its blockade. But obviously the associations don’t speak for all companies.
Surveys show that companies in Germany have long since adapted to supply chain laws. The management consultancy Inverto recently surveyed over 600 managers of large German and French companies for a study. The majority of companies are already planning a European supply chain law. Three quarters of those surveyed even expect additional income from a uniform EU directive.
Tchibo manager: “Horrified by the actions of the FDP”
Example Aldi Süd. The agreement is welcomed, writes the discounter upon request. It creates a “level playing field”, i.e. equal conditions for all competitors. With the new law, a Spanish supermarket, for example, has to follow the same rules as the Aldi supermarket, which currently has a comparatively high burden due to the German supply chain law. The clothing company s.Oliver argues similarly.
The Tchibo company, known for coffee and consumer goods, is going on the offensive. “It is important that Germany follows this EU directive […] now agrees,” writes Johanna von Stechow, Head of Corporate Responsibility on LinkedIn. Her colleague Frederike Boll, human rights manager, adds: “I am horrified by the FDP’s actions and hope that the rest of the federal government remains stable and prevails on voting for the European supply chain law.” According to reports, the federal government wants to do so agreed on a common line this weekend, with Chancellor Scholz also involved.
Human rights and good business: no contradiction
The “Responsible Business Alliance”, an association of 230 international companies, has recently contacted the Chancellor again to express their appreciation for the law, it is said. The corporate alliance includes BMW, Airbus and Amazon.
Antje von Dewitz, the managing director of the outdoor manufacturer Vaude from Baden-Württemberg, even wrote an open letter to the Chancellor to get him to approve the law. It says: “It is possible to take responsibility in the supply chain and be economically successful at the same time.”
2024-01-28 16:47:42
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