New EU-ILO action to advance decent work in supply chains through sectoral social dialogue

10 November 2022

The European Union and the ILO have launched a joint action to offer support to the European social partners who request it, to advance responsible business conduct, due diligence and decent work in more sustainable supply chains.

The project will support the efforts of European employers and workers to navigate the context created by the move to make due diligence mandatory for businesses, as included in the proposed corporate sustainability due diligence Directive.

Over the course of two years, the ILO, in close collaboration with the European Commission, will offer technical support to the social partners in European Sectoral Social Dialogue Committees (SSDCs) to promote responsible business conduct and due diligence, as well as the ratification and effective implementation of international labour standards.

The SSDCs bring together the social partners in specific sectors from the EU Member States to engage in social dialogue. Business Europe and the European Trade Union Confederation (ETUC) are important stakeholders of the project.

ILO-Brussels interviewed Lluís Prats, Head of Unit International Affairs at the Directorate-General for Employment, Social Affairs and Inclusion at the European Commission.

The proposed new Directive on corporate sustainability due diligence places the EU at the forefront of global efforts to make due diligence mandatory for businesses. How will this impact employers and workers across the supply chains?

The Communication on Decent Work Worldwide, and the proposal for a directive on Corporate sustainability due diligence were adopted on 23 February 2022. The proposed directive on corporate sustainability due diligence is now in the hands of the co-legislators, and we must respect the legislative process taking place at present.

With this package, Europe sends a strong signal that business activities cannot be carried out at the expense of people's dignity and freedom. The EU economy is connected to millions of workers through global supply chains. Decent work is in the interest of workers, businesses and consumers everywhere and all workers worldwide have the right to fair and appropriate conditions. There is no place for lowering basic labour standards as a means to gain competitive advantage.

Many workers worldwide still see their labour and social rights threatened on a daily basis. The EU has a leading role in promoting decent work that puts people at the centre, making sure that their rights and their dignity are respected. The package links to corporate responsibility by highlighting the role and impact of companies throughout the global supply chain. Promoting decent work in supply chains is an important aspect of corporate responsibility.

The Communication reaffirms the EU's commitment to champion decent work both at home and around the world. It underlines that not only states need to protect human rights, including labour rights, it is also the responsibility of companies to respect them, including throughout their supply chains.

As shown in the toolbox of EU instruments in the Communication, many EU policies and initiatives promote decent work worldwide, including in global supply chains. This includes due diligence requirements for businesses, disclosure standards on social matters, and transparency provisions on the sustainability of products. Consumers are increasingly demanding goods that are produced in a sustainable and fair way that ensures decent work of those that produce them.

What is the aim of this action and how will it support the European Commission’s strategic objectives?

The primary aim of this action is to support efforts of European social partners to take actions toward advancing decent work in global supply chains. Decent work, including compliance with international labour standards, is a central aspect of the EU’s role as a responsible global leader, as highlighted in the Pillar of Social Rights Action Plan.

This EU-ILO action has its origins in our Communication on Decent Work Worldwide. The communication includes an offer to support possible actions by the social partners in the SSDCs, at their request. DG Employment, Social Affairs & Inclusion has designed with its implementation partner, the ILO, a package of support to assist the SSDCs to deliver actions to promote decent work in their sectors and global supply chains.

This project supports the European Commission’s strategic objectives of promoting a rights-based approach to the management of global supply chains, and of empowering social partners, and the associated actors throughout their supply chains to engage effectively with decent work in global supply chains. In this action, the SSDCs have the opportunity to make use of ILO technical expertise, well in advance of some new “game-changing” initiatives, to prepare their sectors.

Which actions has the European Commission taken to promote social dialogue in the EU Member States and at the European level?

The Commission is committed to strengthening social dialogue at all levels, as demonstrated by the European Pillar of Social Rights Action Plan. At the Porto Social Summit in 2021, EU leaders and Heads of State and governments sealed this commitment at the highest political level. The Porto Social Commitment, signed also by EU social partners, calls for joint efforts to strengthen social dialogue at the European, national, regional, sectoral and company levels.

The Commission helps social partners adapt to new challenges, notably on the twin challenges of the green and digital transition.

We support social partners through targeted funding aiming to boost their capacity by training, collecting evidence or facilitating exchanges of good practices. More than EUR 30 million is being invested annually to strengthen the capacity of EU social partner organisations to address challenges in the changing world of work. In 2020 and 2021, the available budget for social partners was even increased by 10 million reflecting the particular needs due to the COVID-19 crisis.

The European Social Fund provides substantial funding to national social partners.

In early 2023, the Commission will present a social dialogue initiative to support social dialogue at EU and national level. The initiative is being prepared with close involvement of social partners. It will consist of a chapeau Communication on strengthening social dialogue in Europe, and a proposal for a Council Recommendation on the role of social dialogue at national level. The Communication will outline the main challenges ahead in terms of social dialogue and collective bargaining in light of the recovery, the twin transitions and the changing world of work. The proposal for a Council Recommendation will provide guidance to Member States on how to best promote social dialogue and strengthen collective bargaining.

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