Trade unions welcome EU due diligence directive as victory for human rights

The European Trade Union Confederation (ETUC) has welcomed the political agreement announced in Brussels last week on the Corporate Sustainability Due Diligence Directive (CSDDD) as a “step in the right direction on the path to securing decent and safe working conditions around the world”.

BusinessEurope, the federation of employers’ groups across Europe, gave a completely opposite view, claiming that the directive is not fit for purpose as it stands. It said the CSDDD is way too vague and will not allow EU businesses to properly apply due diligence across their value chains, leaving companies between a “rock and a hard place”.

“The level of detail in the information that European companies will have to require from their suppliers is not clear. This obligation can conflict with existing legislation in some third countries, like China. Companies could be subject to penalties and possible criminally liability when conducting due diligence there. As a result, many businesses would be forced to withdraw from these key markets. This would jeopardise not only our competitiveness, but also Europe’s ability to access critical materials for our green transition and to address security concerns,” warned BusinessEurope.

But the ETUC said that the directive was great news for workers in Europe and worldwide.

“The measures will help in holding businesses accountable for standards in their supply chains, both inside and outside the EU, and for the impact of their operations on human rights and the environment,” it said.

A full text of the CSDDD is not yet available, but the ETUC said that the agreement is reported to include measures that:

• Give an important role to trade unions and workers representatives in due diligence strategies and plan of business.
• Ensure many more EU and non-EU companies will be held accountable for their operations, including SMEs as part of the supply chains.
• Ensure that business civil liability, remediations for victims, strong non-regression and review clauses provide reassurances that human rights violation by businesses is a no go.

The ETUC hopes for a quick adoption of the CSDDD at the next Committee on Legal Affairs (JURI) of the European parliament during a plenary session in 2024.

ETUC deputy general secretary Isabelle Schömann said: “The major political agreement on Corporate Sustainability Due Diligence reached by the European institutions shows that the EU can make the difference for social justice and human rights.”

“This is a significant piece of a puzzle to stop business models based on labour exploitation, including child and forced labour. The EU is paving the way for more sustainability, in putting people and the planet before profit,” she continued.

Adding: “The recognition of the important role played by trade unions in achieving this is crucial as workers know best where the health and safety risks lie, where human rights are at risk in their companies and their respective value chains.”

Schömann said, however, that the ETUC is not pleased that the financial sector, including insurance, was excluded from the reach of the directive for now.

“It is, however, a shame that the financial sector is exempted, as it has a large responsibility in financing sustainable business. Nonetheless, the CSDD directive is a clear signal to the world that business accountability is the new norm, that workers and trade unions matter, that the environment matters. This is what due diligence is about. This is good news,” she added.