2024-04-25 03:13:07
The EU Parliament is clearing the way for the supply chain law – and not just to the chagrin of the FDP. A t-online reader vents his anger about the “bureaucracy monster”.
The introduction of the European Supply Chain Act for medium-sized businesses comes at a time when medium-sized businesses are already being shaped by the challenges of the corona pandemic, the war in Ukraine and the demographically-related shortage of skilled workers. Companies are already significantly burdened with the consequences of these developments and the national supply chain law and are feeling the consequences significantly.
The reason: The bureaucracy is passed through the supply chain. In order to comply with their own due diligence obligations, the companies directly affected turn to their suppliers and business partners, who are often small and medium-sized companies, and require them to provide comprehensive evidence through contractual clauses.
About the guest author
Oliver Kern is 62 years old and lives in Baden-Württemberg. The t-online reader has been working as a banker since 1978.
In addition, a look at the trade statistics shows that the value of imports of goods from Asian countries that are classified as problematic, such as Bangladesh and Cambodia, have already fallen since the national supply chain law came into force. This development suggests that a restructuring of the supply chains of globally oriented German companies is taking place. Unfortunately, this comes at the expense of the supplying countries, which suffer from the more stringent conditions.
In other words: The Delivery Act does not ensure that children go to school instead of work, but rather that they are pushed into completely unregulated industries such as mining, domestic services, street vending or even prostitution. Ultimately, the reason for child labor is the abject poverty of many families who could not survive without a contribution from their children.
Economic researchers warned in advance about the possible negative effects of the national law on the supplying countries. The Kiel Institute for the World Economy (IfW) predicted not only the weakening of German companies, but also a tightening of working conditions in the supplying countries.
The shift of responsibility from politics to business should also be criticized. The governments of the supplying countries, over which the federal government could influence through instruments of international law, are relieved of their responsibility by the Supply Chain Act. It would be more effective to reach multilateral agreements in order to directly influence the governments of the supplying countries and bring about positive changes.
In summary, it can be seen that the supply chain law not only burdens German medium-sized businesses, but also has significant negative effects on the supplying countries.