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Due diligence and responsibility in the supply chain: combating human trafficking and labour exploitation

The seminar titled "Due diligence and responsibility in the supply chain: combating human trafficking and labour exploitation" took place from October 28 to 30, 2024, in Belgrade/Serbie. It was organized by the Trade Union of Construction Workers and IGM Serbia, in collaboration with ACV Building - Industry & Energy, Belgium (ACVBIE) and the Christian National Trade Union Federation (CNV) of the Netherlands. The event took place within the framework of the EZA Special project for workers' organisations in candidate countries and was funded by the European Union.

The seminar brought together 35 participants, trade union representatives from the construction sector, building materials industry, forestry, wood industry, and road construction. Attendees came from Slovenia, Bosnia and Herzegovina, Croatia, North Macedonia, Serbia, Belgium, the Netherlands, and Austria.

Notable speakers included the General Secretary of the European Federation of Building and Wood Workers (EFBWW), representatives from the International Labour Organization (ILO) office in Serbia, the German Organization for International Cooperation (GIZ GmbH), the National Agency for Peaceful Resolution of Labor Disputes, and the NGO Astra.

Participants explored key principles, best practices, and initiatives related to due diligence. Topics included:

  • The role of the EFBWW and the tools it has developed.

  • The impact of social dumping on construction workers within the EU.

  • Mechanisms and procedures for grievance resolution.

  • Projects focused on supply chain accountability and due diligence.

  • Both internal and external protection mechanisms to combat labor exploitation.

The seminar provided a valuable platform for exchanging knowledge and fostering collaboration to address challenges in supply chains while promoting workers’ rights and combating exploitation.

Conclusions

  1. Human Rights Due Diligence (HRDD): A Legal and Ethical Mandate

    • The implementation of HRDD transforms corporate responsibility, expanding it across entire supply chains and shifting from voluntary measures to legally binding obligations. Companies now face legal accountability, with national supervisory authorities empowered to impose fines and individuals and communities granted access to legal remedies for compensation.

    • Transparency becomes a core requirement, obliging companies to publicly disclose their due diligence procedures. This shift fosters operational efficiency, reduces labor disruptions, and enhances investor and consumer trust, aligning with the growing demand for ethical and sustainable business practices.

  2. HRDD: A Pillar for Trade Unions

    • HRDD directly supports trade union objectives by ensuring companies uphold human rights and promote ethical practices across supply chains. It helps prevent forced labor, unsafe working conditions, and discrimination while increasing accountability and transparency, particularly for multinational corporations.

    • This framework benefits both businesses and workers, creating a fairer and more equitable environment for all stakeholders.

  3. The European Commission Directive on Corporate Sustainability Due Diligence (CSDD)

    • Effective since July 2024, this Directive aims to foster sustainable corporate behavior and address adverse human rights and environmental impacts throughout global value chains.

    • For citizens, it ensures stronger protection of labor rights, access to justice for victims, and a healthier environment. For businesses, it provides a harmonized legal framework, legal certainty, and a level playing field, while enhancing risk management and competitiveness.

  4. The Role of HRDD, CSDD, and CSRD in Business Sustainability

    • These frameworks enable companies to identify, prevent, and mitigate potential human rights abuses and environmental impacts, prioritizing sustainability and responsibility at all levels.

    • Trade unions play a critical role in holding businesses accountable, protecting workers' rights, and promoting fair working conditions, ensuring that profit does not come at the expense of people or the planet. Collaborative efforts between governments, businesses, civil society, and unions are essential to achieving these goals.

  5. Inefficiency of Legal Labor Dispute Procedures

    • Traditional legal avenues for resolving labor disputes often prove insufficient, necessitating the use of internal grievance mechanisms. These mechanisms provide employees with a platform to file complaints when their rights are violated, promoting fairness and impartiality.

  6. Benefits of Grievance Mechanisms

    • Grievance mechanisms improve workplace transparency and harmony, prevent conflict escalation, and provide simple, effective solutions to disputes. They also enable employees to exercise their rights without external intervention, fostering trust and stability within organizations.

  7. Internal Grievance Mechanisms

    • These mechanisms reduce reliance on lengthy court proceedings and encourage employees to report issues. Anonymity and confidentiality are key features, ensuring that employees feel secure in addressing their concerns without fear of retaliation.

  8. Accessibility of Grievance Mechanisms

    • To be effective, grievance mechanisms must be available in the local population's language to ensure accessibility and usability.

  9. Knowledge Gaps Among Trade Union Representatives

    • Many trade union representatives in EU candidate countries lack familiarity with EU due diligence tools and grievance mechanisms, highlighting the need for targeted training and education.

  10. Challenges in Combating Labor Exploitation

    • NGOs like Astra face significant obstacles, including state-employer ties, inadequate state responses, and the complexity of subcontracting chains. Good practices, such as successful communication between Astra and Volkswagen, demonstrate the importance of collaboration and due diligence in addressing exploitation.

  11. Best Practices and Collaboration

    • Implementing best practices in due diligence, ensuring transparency, fostering multisectoral collaboration, and promoting effective social dialogue are critical to addressing labor exploitation and advancing workers' rights.

  12. The Future of Trade Unionism

    • Trade unions must strengthen partnerships with NGOs and engage with younger generations to inject fresh energy and enthusiasm into their activities.

  13. Adapting to New Challenges

    • Trade unions in the EU and surrounding regions must adapt to evolving conditions, unify efforts, and modernize their operations to address emerging challenges effectively.

  14. Addressing the Influx of Migrant Workers

    • The demand for labor in the EU has led to an influx of workers from the Far and Middle East, necessitating new union strategies to prevent exploitation and protect the rights of these workers.

Participants highlighted that the seminar's greatest benefits were acquiring new information and exchanging experiences, which will enhance future union activities, strengthen solidarity among unions, and align their approaches with the advocacy models of European trade unions.

The attendees expressed their heartfelt gratitude to the European Union, the European Center for Workers’ Questions (EZA), ACV Building - Industry & Energy of Belgium (ACVBIE), and the Christian National Trade Union Federation (CNV) of the Netherlands for their invaluable financial and / or organizational support, which ensured the seminar's success.