The Supply Chain Due Diligence Act: Options for action for German co-determination actors and trade unions

[Introduction:] As is well known, globalisation has led to increased outsourcing of production, with goods being purchased in far-flung corners of the world, not least because of lower wages, weaker labour and environmental regulations and fewer controls. Such an environment is difficult for trade unions to operate and union density therefore is rather low. As a result, working conditions in the countries of the Global South (and East) are predominantly catastrophic. Due to outsourcing, companies' profit margins have increased significantly, but they are not prosecuted for labour and environmental violations in other countries (along the supply chain). In order to improve compliance with key internationally recognised human, labour and environmental rights along the value chain, the legislator has established "requirements for responsible management of supply chains for companies - above a certain size" with the Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz - LkSG), the Act was passed by the German Bundestag on 11 June 2021. The aim of the legislator is to ensure that companies based in Germany fulfil their responsibility in the supply chain with regard to respect for internationally recognised human and labour rights by implementing core elements of human rights due diligence in their business activities. (...)