Nachrichten & Pressemeldungen - 14 January 2021 70 economists call for supply chain law In one 70 economists speak out in public (PDF file) for the introduction of a supply chain law in Germany. From an economics perspective, a supply chain law is necessary and feasible, according to the signatories. The project has been controversial between the coalition parties for months and is repeatedly delayed. "A supply chain law prevents undesirable competitive advantages due to poorer working conditions, poverty wages or failure to invest in labour and environmental protection. Such a law recognises the achievements of companies that are already committed to sustainable supply chains and motivates other companies to do the same," said co-signatory Dr Frank Hoffer, long-time employee of the International Labour Organization (ILO) and former managing director of ACT, the initiative of textile companies and trade unions for living wages in the textile industry. Prof. Dr. Elisabeth Fröhlich, President of CBS International Business School, also emphasizes: “Germany in particular, with its large current account surpluses and its economic dependence on world trade, must promote regulated sustainable globalisation in order for the local economy to remain sustainable.” The Supply Chain Act is part of the coalition agreement and is intended to regulate companies' due diligence obligations along their supply chains by law. So far, however, the governing parties have not been able to agree and are hesitating to push ahead with a bill. “The Federal Government has committed to a supply chain law in the coalition agreement. But the legislative period is coming to an end, so the time to act is now," emphasises Johanna Kusch, spokeswoman for the Supply Chain Act initiative. The issues should actually be resolved on 13 January in a top conversation between Chancellor Angela Merkel (CDU) and Vice-Chancellor Olaf Scholz (SPD). However, no agreement could be reached here again.
