EU votes today to hold brands liable for manufacturers’ rights violations
The European Union is set to vote on a bill today that has the provision for holding brands responsible for violations of human rights or environmental laws by manufacturers.
"Exactly 11 years after the [Rana Plaza] collapse, the European Parliament will vote on the Corporate Sustainability Due Diligence Directive," said the Clean Clothes Campaign in a press release recently.
"For the first time over the last decade, this day of commemoration will also be a day of hope. On the day where we remember the lives lost in the Rana Plaza collapse, this vote represents a significant milestone for workers, communities, and activists worldwide and a major step for corporate accountability," the press release quoted Muriel Treibich, Lobby and Advocacy Coordinator for the Clean Clothes Campaign as saying.
The bill, if passed, will be applicable for companies having over 500 employees on average and a net worldwide turnover exceeding 150 million euros.
The draft law states that such companies are liable for their "upstream" and "downstream" partners.
"In order for the due diligence to have a meaningful impact, it should cover human rights and environmental adverse impacts generated through the majority of the life-cycle of production, distribution, transport, storage and disposal of a product [...]," states the draft.
The draft law comes with penalties for violations, like fines worth 5 percent of the company's net turnover.
The draft law states that the manufacture and trade of textiles, clothing leather and related products (among others) are "high impact" sectors.
The European Union is one of the two largest export destinations for Bangladesh's ready-made garments, the other being the USA.
"It is essential to establish a European framework for a responsible and sustainable approach to global value chains, given the importance of companies as a pillar in the construction of a sustainable society and economy," said the draft law.
A press release by the European Council on December 14, 2023, stated, "On civil liability, the agreement reinforces the access to justice of persons affected."
It goes on to say that trade unions, civil society organisations and persons affected by "adverse impacts" have a window of five years to make those claims.
"As a last resort, companies that identify adverse impacts on the environment or human rights by some of their business partners will have to end those business relationships when these impacts cannot be prevented or ended," said the statement.
The first due diligence law was passed in France in 2017 and was nicknamed the "Rana Plaza law", read the Clean Clothes Campaign in their press release. This was followed by Germany in 2023.
The Clean Clothes Campaign said that to be compliant with this new law, brands must ensure that when workers in the supply chains are killed, the financial compensation is consistent with international standards.
In addition, it said that brands have to adjust their pricing policy to make sure that workers are paid living wages.
As per the EU parliament website, the law was first proposed in February, 2022, to institute an EU legal framework across global value chains.
The full draft law was approved last March.
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