??Dive into the world of value chains: Latest updates!
Hello together!?
Explore the hot topics in the German government—discussions on Supply Chain Act reporting and Oxfam's accusations against Edeka and Rewe. Globally, the EU considers financial sector exclusion.
Wishing you joyful holidays with your loved ones! We're taking a break and will be back in January.
Unlearn Value Chains
Our co-founder participated in the Assembly of the Unlearn Business Lab and dived deep into the discussion around the topic "Unlearn Value Chains", debating issues such as reevaluating commitments to suppliers and workers, rethinking ownership structures, and emphasizing the distinction between transparency and justice. Learn more: https://www.unlearnbusinesslab.com/
Join our upcoming Lunch & Learn: "1 Year of Grievances after the German Supply Chain Act" with Gwendolyn Remmert and Holger Hembach .
German government discusses reporting obligation for supply chain law
There are discussions within the German government about a potential suspension of reporting obligations under the Supply Chain Act until 2025. Representatives from the Ministry of Labor and the Ministry of Economic Affairs are working on a draft law that would integrate reporting requirements into sustainability reports following the EU Directive on sustainability reporting. Earlier reports in September hinted that Federal Minister of Economic Affairs Robert Habeck was considering this suspension to avoid duplicate reporting. However, Anna Cavazzini, Chair of the EU Committee on the Internal Market and Consumer Protection, opposes the suspension, stating that most companies have already begun implementing reporting obligations. The outcome of the discussions within the German government remains uncertain.
Edeka and Rewe violate supply chain law
Several German supermarkets, including Edeka and Rewe, are accused of violating the Supply Chain Act by Oxfam. Allegations include exposure to toxic pesticides, low wages, and anti-union activities on banana and pineapple plantations. Workers report hazardous conditions, inadequate protective gear, and discrimination. Oxfam filed complaints against Edeka and Rewe under the Supply Chain Act, seeking investigation by the Federal Office for Economic Affairs and Export Control. Aldi and Lidl engaged in dialogues with unions, while Edeka and Rewe face scrutiny for allegedly ignoring issues and relying on ineffective certifications. Oxfam will monitor law enforcement and corporate responses.
?? More information here (in german).
Financial sector exclusion in supply chain law?
The Spanish EU Council Presidency suggests excluding the financial sector from the EU Supply Chain Law to resolve internal disagreements, risking the overall consensus. A potential compromise includes a review clause to involve financial institutions later on.
?? More information here (in german).
Pakistan Mall Fire Tragedy
A devastating fire at Karachi's RJ Mall killed at least 10 people, highlighting ongoing fire risks in the densely populated city. The blaze, starting on the second floor, exposed Karachi's inadequate firefighting infrastructure and lax building code enforcement. The cause is under investigation. Approximately 90% of structures in Karachi lack proper fire prevention and firefighting systems. This incident adds to a series of fire-related tragedies, emphasizing the urgent need for improved safety measures.
?? More information here.
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???? Bangladesh
Bangladesh's Impact: Strikes and Wage Demands Affect German Imports
The share of clothing imports from Bangladesh to Germany has significantly increased over the past decade, reaching 20.3% from 12.1% in 2013, making it the third-largest supplier after China and Turkey. Despite an overall decrease in clothing imports to Germany by 14.1%, Bangladesh faces attention due to worker strikes and demands for higher wages. The country, a major global textile producer, hosts around 3,500 factories, employing four million people. Recent closures of 150 factories indicate concerns over potential strikes. Western brands like Gap, H&M, and Aldi manufacture clothing in Dhaka, the capital, and its suburbs.
?? More information here (in german).
Garment worker killed in Gazipur clash
A clash between police and garment workers in Gazipur resulted in the death of 24-year-old Anzuara Khatun, who was demanding a minimum wage of Tk 23,000. Injured during the protest, she was declared dead at Dhaka Medical College Hospital. Another worker, Jalal Uddin, was injured. Garment workers vandalized factories, prompting law enforcement to intervene with tear gas and rubber bullets. The incident occurred a day after the wage board set the minimum salary at Tk 12,500, rejected by union leaders.
?? More information here.
Solidarity with workers in Bangladesh
Bangladeshi textile workers are protesting for a higher minimum wage of 23,000 Taka (￡168), exacerbated by the pandemic and inflation. While global fashion brands, including Gap, Levi's, and H&M, express support, concrete steps for implementation are lacking. Protests escalate, with reported worker losses and political interference ahead of elections. Questions arise about the industry's commitment to fair wages and workers' rights.Workers are demanding an almost threefold wage increase to cope with the rising cost of living. U.S. brands claim to support workers' rights, while the garment industry plans to pass the costs onto the factories instead of touching their profits.
For the next year and every day - a Black Friday guide
Traditionally, Black Friday is known for massive sales and discounts. In today’s economies, large corporations shape our desires through marketing. This guide promotes conscientious consumption on Black Friday and opposes exploitative practices, advocating for ethical and sustainable production.
Social audits: A system setup for failure
Insider reports reveal that worker abuse audits funded by corporations tend to fail. Social audits, conducted by auditing firms for global companies, face criticism for often prioritizing company interests over worker protection. Concerns about the effectiveness of such audit reports are raised, calling for more rigorous monitoring tools. Workers describe unfair labor practices at companies like Amazon, McDonald's, Chuck E Cheese, and the InterContinental Hotels Group. Auditors emphasize their limited authority to address human rights violations.
?? More information here.
??? More information to hear?
???Discover how Butzkies Stahlbau turned the Supply Chain Act into a business advantage. ??? Listen to understand why LkSG, CSDDD, and CSRD are crucial for businesses of all sizes.
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??? In the latest episode of WHISTLEpedia, Martin Walter and Adrian K?nig explore whether associations should actively support their member companies in establishing and operating internal reporting mechanisms. Dive into the realm of corporate integrity and association assistance.?
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