Fundamental freedoms - Heil seeks to impose stringent supply chain regulations in conjunction with Habeck.
The German Ministry of Labor is exploring new measures introduced by Economic Minister Robert Habeck (Greens) to tighten supply chain rules in Germany. Habeck proposed postponing the German Supply Chain Act for around two years for family-owned businesses.
Labor Minister Hubertus Heil's (SPD) representative commented that the ministry supports a national and European Supply Chain Act, promoting fair competition.
The representative added, "We aim to implement the European directive with minimal bureaucracy." The Ministry of Labor will engage in discussions with the business sector on this issue.
Habeck recommends suspending the law
Habeck suggested that if the recently passed EU law is gradually transformed into German law, "we need to adopt a practical approach during the transition period." Thus, he proposed delaying or substantially modifying the German Supply Chain Act until the EU law is executed.
Heil's spokesperson stated, "Our goal is to create a straightforward and efficient implementation of the Supply Chain Act and the associated EU Supply Chain Directive, as well as ensure effective human rights protection." No further plans known to the Federal Labor Ministry were shared.
Habeck proposes to delay the law
Habeck maintained, "Human rights and environmental standards can only be safeguarded if they are accepted by companies." Many German enterprises have been investing extensively in human rights protection within their supply chains for years and deserve government trust.
Greens chairman Omid Nouripour argued, "The Supply Chain Act is something we have been striving for, both domestically and internationally." However, the German and EU laws are not entirely in sync. Habeck has a valid point, and it's essential to align them to give companies certainty. This aligns with the Greens' perspectives.
Sanctions for child labor
The German Supply Chain Act is currently active, while a similar EU directive must still be turned into national law. EU states have been given two years for this. Ultimately, large organizations can face penalties if they benefit from human rights abuses, such as child or forced labor.
One of the key differences between the German legislation and the EU directive is liability. Under the German law, companies are exempted from liability for negligence - the EU regulation permits this.
Rolf Mützenich, leader of the SPD parliamentary group, rejected Habeck's proposal, while Federal Finance Minister Christian Lindner (FDP) supported it.
