Global Business Landscape Transformed by German Supply Chain Law: Are Lower-Tier Workers Getting Left Behind?

A recent conference in New Delhi celebrated 20 months since the implementation of the German Supply Chain Due Diligence Act (SCDDA), uniting trade unions, corporate groups, and civil society organizations to examine its implications for workers and communities in global supply chains. Hosted by the German Embassy in collaboration with the Friedrich-Ebert-Stiftung and the Rosa-Luxemburg-Stiftung, the event emphasized the law’s real-world effects on rights holders, particularly workers, their families, and surrounding communities. Key discussions centered on improvements in occupational health and safety, wage levels, and contractual terms, with particular attention paid to the challenges faced by women in the workplace.

German Ambassador Dr. Philipp Ackermann hailed the SCDDA as a “bold, perhaps pioneering step” toward enforcing human rights and environmental standards in global supply chains. He noted that businesses embracing responsible practices tend to enjoy greater success, benefiting not just people and the planet but also their bottom line. The conference yielded early positive results, highlighting improvements across various companies. However, participants unanimously agreed that more action is required to support lower-tier suppliers, advocating for proactive measures from lead companies to minimize reliance on complaints procedures. Furthermore, there was a shared acknowledgment of the need for better representation for non-organized workers, including daily wage earners in supply chains.

In conclusion, attendees committed to ongoing discussions about responsible business practices and pledged to produce a comprehensive report on the conference’s findings to sustain momentum around the SCDDA and its objectives.