New standards

EU states agree on supply chain law

Large companies that profit from child or forced labor outside the EU can be held accountable in the future.

(Bild: APA/HELMUT FOHRINGER)

The EU member states agreed on the supply chain law on Friday. The vote among the 27 member states had previously been postponed several times. The Austrian government had also announced that it did not want to agree.

An agreement is now likely to have been reached so that the necessary majority can be reached. It was still unclear which governments voted in favor on Friday. Nine are said to have abstained from voting, including Germany and Austria. Italy's government, however, still gave in.

The EU Supply Chain Act is intended to hold large companies accountable if they profit from child or forced labor outside the EU, for example. Companies above a certain size must also ensure that their business model and strategy are compatible with the Paris climate targets. The aim is to limit global warming.

ÖVP: Too much bureaucracy
"The BMAW (Federal Ministry of Labor and Economic Affairs; note) fully shares the basic objectives of the directive with regard to the protection of human rights and the environment, but we are of the opinion that the objectives of the directive could be achieved better and with much less bureaucratic effort for companies," said Economics Minister Martin Kocher (ÖVP), explaining the rejection. He is thus in line with the Chamber of Commerce and the Federation of Austrian Industries (IV).

SPÖ: "Comply with environmental and social standards"
Support for the new law came on Friday from the SPÖ, the Greens, the ÖGB and the Südwind association, which campaigns for global justice, among others. "Environmental and social standards should be upheld. To argue that the Supply Chain Act is too bureaucratic is cynical, outrageous and the wrong approach," said EU lead candidate Andreas Schieder (SPÖ).

"It's good that it's there. Even if the compromise is heavily watered down in some places. In the end, it is good news for environmental protection and human rights (...)", said Lena Schilling, lead candidate of the Greens for the EU elections in a press release.

Overall, only very few companies in Austria will be affected.

ÖGB-Präsident Wolfgang Katzian

The Austrian Trade Union Federation (ÖGB) also regretted in a press release that too many concessions had been made. For example, companies with 500 employees are not affected as originally planned, but only those with at least 1,000. The annual turnover for companies that are affected has also been increased. "Overall, only very few companies in Austria will be affected," said ÖGB President Wolfgang Katzian.

In addition, there will no longer be separate rules for high-risk sectors and the rights of civil society to take legal action have been restricted.