Against forced labor

EU Parliament approves supply chain law

In future, large companies will be held accountable if they profit from child or forced labor outside the EU, for example.(Bild: AFP)

Despite some resistance, the EU Parliament gave its final approval to the new EU supply chain law in Strasbourg on Wednesday. It is intended to hold large companies accountable if they profit from child or forced labor outside the EU, for example.

Austrian MEPs were very critical of the new law in the run-up to its adoption. After the Parliament, the Council (of the Member States) still has to give its final approval.

The EU member states were only able to reach a joint compromise in March after several attempts - despite resistance from some countries, including Austria. However, the scope of application was significantly restricted.

While the agreement between the EU member states and the EU Parliament stipulated that the directive would apply to companies with 500 employees and a turnover of 150 million euros or more, it will now only apply to companies with 1,000 employees and a turnover of 450 million euros or more.