© Céline Eischen
A broad coalition of trade unions, NGOs, and business representatives in Luxembourg has launched a new campaign warning that proposed EU reforms to supply chain rules risk undermining human rights and climate protections.
The action group 'Pour un Devoir de Vigilance' ('A Duty of Vigilance') has brought together trade unions, business sector representatives, and members of the civil society to voice unified concerns over the weakening of due diligence in the so-called 'Omnibus' law announced by the European Commission. The law, which pertains to the bloc's supply chain regulations, is perceived as a step backwards on the human rights front given that it aims at simplifying and streamlining procedures for companies after business representatives complained about increased administrative burdens.
An ambitious policy is needed to uphold human rights and climate goals, but the announced omnibus package from the European Commission goes in the wrong direction, argued Jean-Louis Zeien, co-coordinator of the action group, at a press event on Tuesday. The group thus launched a new campaign to highlight the importance of the EU-wide supply chain law.
According to Zeien, the Luxembourg government has yet to make a clear statement on its position regarding the proposed changes, recounting a recent meeting the group had with the relevant ministers, who are said to have remained vague in their stance by simply highlighting their goal of administrative simplification. In this regard, the president of the Human Rights Commission, Noémie Sadler, noted that it would be a clear setback for human rights should the proposed omnibus law be passed.
Charles Muller, president of the NGO Finance & Human Rights, echoed Sadler's criticism, explaining that the omnibus law masks deregulation under the supposed goal of administrative simplification, with the EU Commission giving companies free reign, according to Muller. Nora Back, president of the Independent Luxembourg Trade Union Confederation (OGBL), also warned that the omnibus law aligns with the broader trend towards deregulation, providing examples from Luxembourg ranging from the extension of Sunday working hours to the weakening of labour laws and collective bargaining, which directly concern trade unions.
One of the main points of disagreement with the new omnibus law is that due diligence would only be required for the direct business partner, with Zeien providing the example of child labour in cocoa plantations, which are generally not operated by the direct business partners of multinational companies. Zeien stated that, in fact, there are barely any human rights violations committed by the direct business partners. This leaves the door open for human rights violations committed by indirect business partners, as they would remain unchecked, according to Zeien.
Gérard Zoller, director of a medium-sized company and mayor of Saeul, pushed back against claims from business leaders that an ambitious supply chain law would only create administrative burdens and harm competitiveness. Instead, he highlighted the opportunities such a law could bring, stressing the importance of protecting human rights for consumers worldwide. According to Zoller, Europe has the potential to lead the way globally by adopting this approach.
However, Zoller also acknowledged the importance of adequately protecting small and medium-sized enterprises from the obligations of such a supply chain law.
With the new campaign under the slogan 'Luxembourg, tenons le cap!' ('Luxembourg, staying on course'), the aim is to raise awareness among both the Luxembourg government and the public that an EU-wide supply chain law should not be seen as a constraint but as a strategic opportunity. The omnibus package is due to be discussed among EU member states later this month.
However, the European Parliament already decided at the beginning of this month to postpone the implementation of the supply chain law by one month.
