Measures for workers to hold multinational corporations to account for abuses in their supply chains are being slashed, following yesterday's announcement of a trilogue deal to roll back the EU's human rights due diligence rules.
The Corporate Sustainability Due Diligence Directive was brought in following the Rana Plaza disaster, in which 1,134 workers died in a factory in Bangladesh while producing clothes destined to Europe's high streets. In the following years, trade union campaigning secured important legislative advances, including measures for corporations operating in Europe to respect the role of trade unions in preventing and addressing human rights violations in the supply chains.
While corporations lobbying for these roll-backs argue reporting is too costly, recent research indicates that the cost of implementing the Corporate Sustainability Due Diligence Directive for companies is estimated at just 0.009% of EU GDP, while the potential macroeconomic benefit from improved sustainability, reduced risk, and increased transparency could reach up to 0.8% of EU GDP.
Isabelle Schömann, ETUC Deputy General Secretary, said:
"The ETUC condemns this trilogue outcome as a backlash against workers, sustainable business, and European values. It serves only narrow corporate interests while ignoring human rights, trade union rights, and environmental protection.
"This deal is not just bad policy, it’s a blow to democracy. The process lacked proper consultation, impact assessment, and breached EU Better Regulation rules, as confirmed by the Ombudswoman. In addition, the ETUC already condemned the mandate of the European Parliament based on coalition with the far rights parties.
"If adopted, it will show that for parts of the EU, corporate profits now matter more than protecting people and the planet. Justice is everybody’s business; companies must be held accountable for abuses.
Reducing corporate accountability to workers’ rights abuses in their supply chains is the wrong move for Europe.
“The EU strategically had set a good legal framework to leverage the strength of its internal market and set fair competition beyond its borders to protect workers’ rights in and outside the EU. If they decide to slash these measures, EU decision-makers will continue to expose workers here to cut-throat competition.
“But Europe will never win a race to the bottom on workers conditions. This stunted approach is a short-term shot in the arm to shareholders, but it undermines the long-term strategy of securing and creating quality jobs here in Europe.”
