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Pressemeldungen - Unternehmensverantwortung & Lieferkettengesetz

LkSG complaint against KiK: Systematic violations of fundamental labour and trade union rights

Berlin/Karachi. Pakistani textile workers, the Pakistani National Trade Union Federation (NTUF) and the European Center for Constitutional and Human Rights (ECCHR) point to serious evidence of violations of the Supply Chain Due Diligence Act (LkSG) by the textile discounter KiK. They therefore lodged a complaint with the Federal Office of Economics and Export Control (BAFA) against KiK.

At the heart of the complaint are systematic labour rights violations at the Pakistani supplier Mount Fuji, to which KiK did not respond appropriately from the point of view of the complainants, despite the legal obligation.

Accusations against KiK:

• Circumvention of labour and trade union rights: Mount Fuji systematically violates labour law, in particular by withholding adequate wages and suppressing trade union organization. Shortly after signing an agreement with the NTUF on compliance with local labour law, Mount Fuji organized the sham election of a supposed workers' representation. 144 workers were also laid off in violation of local labour law, including union workers.
• Non-compliance with human rights due diligence obligations: KiK did not take effective steps against the documented violations of its supplier, but relied again on its assurances and dubious audits by consulting companies with little experience in social matters - despite clear indications of their inappropriateness.
• Uncritical handling of own purchasing practices: The group refused to seriously address its own role and possible factors contributing to the violations, such as price pressure and short-term cancellations.

Despite clear indications that the measures taken are ineffective and Even though the grievances continue on the groundKiK publicly presents his approach as a success.

To this end: Nasir Mansoor, Secretary General of NTUF: “KiK sells superficial, ineffective measures as progress, while the affected workers in Pakistan continue to work in precarious conditions and we are hindered in our trade union work.”

Already in September 2023, as part of an internal company complaint, the organisations called on KiK to comply with its legal obligations and to take measures to ensure that workers in their supplier factories receive at least the local minimum wage. The company was initially open to dialogue and asked its supplier to sign an agreement on compliance with labour law. But when it soon became clear that the supplier was unwilling to actually comply with the agreement, KiK refused to accept real responsibility for its enforcement.

For the first time: Third-party opposition to BAFA decision – request for re-examination with the involvement of the persons concerned

For the first time, the complaint also includes a third-party objection by data subjects to a decision of the BAFA itself. In September 2024, it became known that the Authority had acted on its own initiative and that KiK had, as a result, certified that it could not identify any breaches of the LkSG with regard to the events in Pakistan – without first hearing the NTUF or other interested parties. This violates the rights of those affected. The organisations call for a renewed comprehensive and independent review of whether KiK has violated the LkSG, involving the NTUF trade union and the affected workers in the process and taking effective measures to remedy and prevent future human rights violations along the supply chain.

“The KiK case is a prime example of why we need the Supply Chain Act, but also of what is going wrong with the law. Consistent implementation and enforcement is needed, in which those affected, such as the NTUF, are seriously involved. Instead, we are witnessing companies again stealing from responsibility – favoured by an authority that is increasingly threatening to gut the law through its restrained control practice,” such Annabell Brüggemann, Senior Legal Advisor ECCHR.

Those affected need strong laws

In addition to ECCHR and NTUF, the NGO FEMNET was involved in the talks with KiK right from the start. As an expert on labour and women's rights in the apparel industry, especially in Asia and through the continuous exchange with local trade unions, FEMNET has a well-founded picture of the working conditions there. Sina Marx of FEMNET adds: “The KiK case is also politically relevant: It shows that the currently discussed change of course at the LkSG endangers the protection of those affected. The Federal Government must counter these developments instead of weakening or even abolishing the law.”

Press contact

Philipp Jedamzik
Media & communication
ECCHR
European Center for Constitutional and Human Rights e.V.
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www.ecchr.eu