Germany: Coalition agrees on supply chain law

“The supply chain law can come”, May 27, 2021.

Four months before the federal election, the grand coalition finally settled its dispute over the planned law on compliance with human rights in international supply chains and reached an agreement, as Minister of Labor Hubertus Heil (SPD) announced. The law can now finally be passed in the Bundestag.

In mid-May, it was removed from the Bundestag’s agenda at the last minute because members of the Union saw a need for discussion on corporate liability.

According to the CSU social politician Stephan Stracke, the parliamentary groups agreed to unequivocally exclude additional civil liability risks for companies by law. The change makes it clear once again that the duties of care must be based on the standard of what is concretely possible and appropriate, explained Gröhe.

Mast emphasized: “There are no limits to corporate responsibility. The global protection and respect for human rights is a mandatory component of this responsibility.” In future, the duty of care will no longer end at the factory gate. In June, before the summer break, the Bundestag meets twice for regular session weeks in which the law could be passed. This is followed by the hot phase of the federal election campaign and the end of the legislative period.

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