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German ministers push for supply chain law against exploitation

  • July 15, 2020

A typical bar of chocolate costs a mere €0.80 ($0.91) at a German supermarket. Many of these sweets, however, are produced using child labor. Two decades ago, the University of Chicago launched a research project looking into how many child laborers are employed on the West African cocoa plantationsin Ivory Coast and Ghana. According to the scholars’ latest report, 2.26 million children are currently toiling away in the industry — a tragic new record.

“The problem is that industrialized nations externalize, meaning we outsource production to developing countries and thereby undermine the production standards we apply in our wealthy societies,” says Germany’s Minister of Economic Cooperation and Development, Gerd Müller. Social and environmental standards which are widely accepted in Germany, he says, are violated in this way. “We accept and cement the exploitation of other human beings and nature in developing countries,” he says.

Ineffective voluntary commitments

Unfortunately, this grim division of labor has existed for many decades. There have been numerous political efforts to change this reality. Some companies based in developed countries, too, have attempted to ensure basic labor, environmental and social standards are met during the production process abroad. Indeed, German Labor Minister Hubertus Heil of the Social Democrats (SPD) has stressed that “anyone who ensures product standards are met can also ensure human rights are respected.”

For fair supply chains: German Development Minister Gerd Müller (CSU, left) and Federal Labor Minister Hubertus Heil (SPD)

According to a survey of over 5,500 large German companies with over 500 employees, voluntary commitments have brought little improvement. A first report published in December 2019 shows that merely 18% of companies surveyed implemented a system to monitor how their foreign-made goods are produced. A later survey showed that 22% of companies had implemented such a monitoring system.

Ministers propose binding law to end exploitation

“The results of the second company survey are once again disappointing,” says Minister Gerd Müller. To him, concrete steps are now needed. “We need a legal framework, as stipulated in the coalition agreement, to meet human rights standards that rule out child labor along the supply chain, and ensure basic environmental and social standards are met,” Müller stresses.

In 2018, Germany’s governing coalition — comprising the Christian Democrats (CDU), Christian Social Union (CSU) and Social Democrats (SPD) — agreed that a law to this end would be passed unless companies’ voluntary commitments proved effective. Since this is not the case, Labor Minister Hubertus Heil announced he will table a bill to tackle this problem in August this year. The plan is to adopt the law by early 2021.

German companies must be responsible not only quality control, but also for human rights, says Heil.

  

Globalization should not imply exploitation

The bill envisions obliging companies with more than 500 employees to ascertain whether their business activities abroad are undermining human rights, and to take counter measures if needed. Moreover, the bill would require companies to publish an annual report on what they are doing to prevent human rights abuses.

“Human rights are universal and the German state, its economy and society, carry responsibility to guarantee they are honored,” says Labor Minister Heil. The German economy, in his opinion, is highly globalized and therefore obliged “to take responsibility.”

Some businesses support the idea

Over 60 companies have expressed support for the proposed law, among them coffee roaster Tchibo, food manufacturers Rewe and Nestlé, and chocolate manufacturer Alfred Ritter. Pro-business associations, meanwhile, reject the bill. They say companies are already under significant pressure due to the coronavirus pandemic. Foreign trade association BGA, for example, criticizes that “the introduction of a due diligence law would bring us to breaking point and further postpone economy recovery.”

“It is assumed that companies have more power than Chancellor Merkel’s government when it comes to pushing for human rights,” says Steffen Kampeter, who heads Germany’s employers’ association. In his view, the bill expects too much of companies. He, along with many other business representatives, takes issue with the fact that companies are supposed to be held liable if human rights standards are breached along the supply chain.

Read more: How coronavirus is affecting underprivileged children in India

Making an effort is key

Labor Minister Heil, however, disagrees. He argues German companies will only be held accountable for foreseeable and thus preventable violations. “We want to oblige companies to make an effort and to do whatever is in their power — if they do this, they will not be held liable,” says Economic Cooperation and Development Minister Müller. 

While Heil and Müller are keen to see their bill turned into law as quickly as possible, this is anything but certain. Not everyone on Chancellor Merkel’s cabinet is a fan of the proposed law. Germany’s Minister of Economic Affairs, Peter Altmaier, for instance, thinks little of it.

A skeptic of the proposed supply chain law: Germany’s Minister of Economic Affairs, Peter Altmaier

Should the EU act?

Altmaier has declared all government members would carefully analyze the bill. “We will assess which loopholes exist, and how we can use Germany’s Presidency of the Council of the European Union to ensure that across the bloc, all states ensure standards are met along the supply chain,” Altmaier said.

Armin Paasch of the Catholic aid agency Misereor says this is exactly the problem. “Moves to shift this debate to the EU level have been and continue to be aimed at postponing the law for years on end,” says Paasch. “This will allow actors to block or water down the proposal,” he says. 

Paasch hopes Müller and Heil will succeed in pushing though their bill. He is convinced that “we need a German supply chain law because this will increase the odds that in two or three years’ time a similar EU regulation will be put in place that applies to other member states as well.”

  • Modern-day slavery

    Illegal workforce

    Despite the fact that slavery is prohibited worldwide, modern forms of the sinister practice persist. More than 40 million people still toil in debt bondage in Asia, forced labor in the Gulf states, or as child workers in agriculture in Africa or Latin America.

  • Modern-day slavery

    Sold, threatened, exploited

    Human trafficking is big business, according to the UN Office on Drugs and Crime. Sectors such as construction or mining exploit almost exclusively men, while victims of forced prostitution and exploitation in private households tend to be women. But something they all have in common: they are coerced into working through threats, the use of violence, or fraud. Most cases go unreported.

  • Modern-day slavery

    When children are enslaved

    Because of poverty parents may sell their children as labor. That’s often the case in Lake Volta, Ghana, where children are forced to work for fishermen. Parents are told their children will get to do an apprenticeship. But in reality, they’re kept as slaves in appalling conditions. According to the International Labour Organization (ILO) there are around 10 million child slaves worldwide.

  • Modern-day slavery

    Child brides

    One in five girls is wed before she turns 18, according to the UN Children’s Fund UNICEF. Not all of these marriages are forced arrangements. But every year millions of underage girls are forced into marriage before the age of 15. In many cases they’re taken out of school and essentially live as unpaid laborers in their spouse’s home. Many report physical and sexual abuse in the marriage.

  • Modern-day slavery

    Locked up

    All over the world, girls are exploited as house slaves — by their own family or by strangers. Poverty-stricken families may be promised that their children will get the chance to go to school. But once they’re taken, these girls are locked inside the house and forced to work 12-14 hours a day. Many also suffer sexual abuse. The number of unreported cases is high — even in industrialized nations.

  • Modern-day slavery

    Millions held in debt bondage

    Under this form of slavery, victims are forced to work to pay off a debt. Often the debts continue to pile up, even if the whole family toils for 10 hours a day at the brickworks, or in their owner’s quarries, fields or mines. Often the debts are also inherited by children. The ILO estimates there are around 30 million people working as debt slaves, most of them in India and Pakistan.

  • Modern-day slavery

    Nowhere to turn

    Illegal migrants are especially vulnerable to exploitation, regardless of where in the world they are. They often have nowhere to claim rights, usually cannot speak the local language, and don’t know where they can turn for help. It’s not clear how many illegal migrants work in agriculture in Europe alone. But many live in abysmal conditions as they slave away for well below the minimum wage.

  • Modern-day slavery

    Born into slavery

    The descendants of African slaves in Mauritania are called “Haratin.” Although slavery is officially banned in the northwestern African country, people are still inherited or sold as property there. An estimated 600,000 women, men and children in Mauritania are currently exploited as domestic workers or in the agriculture sector. That’s one-fifth of the population.

    Author: Helle Jeppesen, Natalie Muller


 

Article source: https://www.dw.com/en/german-ministers-push-for-supply-chain-law-against-exploitation/a-54181340?maca=en-rss-en-ger-1023-xml-atom

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