Williams Babalola
Germany has said that it will start to fine companies acquiring materials from other parts of the world where the rights of humans are violated.
Germany in its new legislation frowned at the abuse of human rights and warned that any company getting supplies from another firm in any of the erring nations won’t be handled with kid gloves.
The legislation advised that companies must ensure their partners abroad meet minimum human rights and environmental standards after the governing coalition reached agreement on a draft law.
Under new legislation agreed to by Chancellor of Germany, Angela Merkel’s government on Friday, companies will have to confirm that their partners are respecter of the law who is not involved in harmful practices and exploitation. In addition to penalties, German firms can also be excluded from public contracts.
The so-called Supply-Chain Law, which still needs parliamentary approval, will apply to 600 firms with more than 3,000 employees starting in 2023. Its scope will be widened to nearly 3,000 companies with more than 1,000 workers from 2024.
Industry groups have argued that the plan is controversial while stating that the complexity and length of supply chains means companies can’t be held accountable for actions beyond their control.
Although the details of fines have not yet been settled, SPD Labour Minister, Hubertus Heil said he could envisage penalties of up to 10% of turnover, meaning they could easily run into the millions in some cases.
“This is the strongest law in Europe so far against worker exploitation. It’s the end of companies weighing human rights against their economic interests. The constitution of Germany says the dignity of all human beings must be inviolate, not just the dignity of the Germans. This is a good day for human rights,” Heil told a news conference on Friday.
The law compels companies to ensure they deal with the right supply chains, a similar law to one introduced in France in 2017.
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