Decent Work in the Cross-Border Supply Chain: A Smart Mix of Legislation and Self-Regulation

336This paper deals with the problem of European companies trading with companies in developing countries where fundamental labour rights are being violated. For a long time, this issue was left to the responsibility of European companies on a voluntary basis. Recently, a shift towards hard law in the sense of legal obligations has become visible. The European Commission started a legislative process in 2021 and published a proposal for a due diligence Directive in February 2022 to which the European Parliament responded in first reading on 1 June 2023. In the meanwhile, France and Germany passed legislation, and in the Netherlands and Belgium a private member’s bill was submitted by members of Parliament. All in all, a lot is happening on this subject at both European and national level. Much has been written about the proposals as such but the issue of fundamental labour rights has been underexposed. This paper fills that gap. Central question is as to what extent legislation will lead to an improvement in compliance with fundamental labour rights in the cross-border supply chain. This paper will explore this question on the basis of the said European and national legislative initiatives. It will become clear that the solution lies much more in a mix of hard law and self-regulation and that in the search for a smart mix, lessons can be learned from the Dutch system of private sector-specific agreements.337