Germany’s Supply Chain Law: Improving Working Conditions and Ensuring Fair Competition

Germany’s Development Minister Svenja Schulze recently defended the country’s supply chain act, dismissing claims that it is too demanding on businesses. The legislation, implemented in 2023, aims to enhance workers’ rights in low-cost manufacturing nations by addressing unsafe working conditions, meager pay, and long hours due to steep competition among suppliers.

Svenja Schulze’s Support for the Law

During a visit to Pakistan, Schulze highlighted the positive impact of the law on fair competition and improved working conditions. She emphasized that workers have seen an increase in wages, better living standards, and improved working conditions as a result of the legislation. German companies are reportedly pleased with the emphasis on sustainable practices and fair competition.

Key Aspects of Germany’s Supply Chain Law

The supply chain law requires German companies to engage in thorough due diligence with overseas suppliers to uphold workers’ rights and environmental standards. While initially applicable to firms with 3,000 employees, the law was later extended to those with at least 1,000 employees to broaden its impact throughout the supply chain.

In the face of budget cuts to the German Development Ministry, Minister Schulze remains committed to securing additional funds to support humanitarian aid efforts.

This article is based on an interview conducted by DW’s Katharina Kroll in German.