EU softens supply chain rules, sparking backlash over worker protections
The European Parliament has approved changes to the EU’s supply chain directive, raising the bar for corporate accountability. Under the new rules, only companies with over 5,000 employees and a global turnover of at least €1.5 billion will be covered. This marks a shift from stricter national laws, including Germany’s own Supply Chain Due Diligence Act (LkSG). Germany’s LkSG currently applies to firms with 1,000 or more employees, affecting over 5,000 businesses. The law was designed to enforce human rights and environmental standards across global supply chains. But proposed amendments now aim to align it with the EU’s softer approach, removing sanctions and easing requirements.
Critics argue the reforms weaken protections. Anna Weirich, coordinator of *Faire Mobilität*, points to ongoing abuses in the transport sector. Truck drivers from Eastern Europe often live in their cabs for months, facing wage theft and intimidation. Weirich’s organisation has documented cases where workers are systematically underpaid or pressured into unsafe conditions. Trade unions and industry groups have also raised concerns. They warn that scaling back the LkSG could leave workers and the environment more vulnerable. The EU directive gives member states until July 2028 to adopt the changes, with corporations required to comply by mid-2029.
The revised directive significantly narrows the scope of corporate responsibility. Fewer companies will now fall under the rules, and penalties for violations have been removed. The final impact will depend on how Germany and other member states implement the changes in the coming years.
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