EU legislation against corporate human rights abuses is on the way

There are currently no rules preventing Swedish and European companies from using child labor or paying slave wages to people in other countries.

Several other EU countries have adopted their own laws against this, but not Sweden. The EU has now initiated legislation and the European Commission is expected to propose a law, while Germany is expected to prioritize the issue during its upcoming EU presidency. Last Monday, Oxfam hosted the biggest event of the spring on the issue, where key European decision-makers and representatives from business, trade unions and civil society made a clear case for legislation.

EU Justice Commissioner Didier Reynders stressed that the EU should urgently develop binding rules to prevent human rights and environmental violations in the supply chains of European companies:
"We need to move quickly. The corona crisis is a painful reminder of the importance of creating a fair society and economy. The weaknesses of companies are now coming to the surface and unregulated global supply chains are having an impact on people and society", said Didier Reynders, who also called the lack of laws and regulations in supply chains one of the main obstacles to sustainable trade.

MEP Lara Wolters also criticized companies for passing on the costs of the pandemic to their subcontractors.
"Some of the world's richest companies are letting vulnerable people pick up the tab for their operational risks," Wolters said.

"To be clear: this is not about a few bad guys. Poor wages and precarious working conditions are a structural problem. It underpins many European business models. This is why only mandatory due diligence can bring about change on the scale needed."

Tim Gore, Oxfam

Oxfam works to make companies take responsibility for the people working in their supply chains, including in the food industry where poverty and insecurity are high among farmers and producers.

Oxfam is calling for an EU law on fair supply chains to:
- Apply to all companies and all levels of companies' supply chains, down to the first level of production
- Require companies to systematically review whether they cause, contribute to or can be linked to human rights and environmental impacts, and take appropriate measures to prevent this.
- Include requirements for companies to consult with affected local communities in the development of impact assessments.
- Include a clear gender perspective, as girls and women are often the most affected.
- Hold companies accountable for human rights and environmental impacts and include effective sanctions for companies that fail to take appropriate action.
- Ensure that victims of corporate abuses are given the opportunity for redress.