This act establishes international labor rights standards in supply chains, ensuring fair wages, safe working conditions, union protections, and legal accountability for corporations.
Description:
Mandatory Human Rights Due Diligence:
All multinational corporations must map and assess labor rights risks across their supply chains annually. Due diligence reports must be made public and include action plans for addressing violations.
Legal Liability for Labor Abuses:
Parent companies will be held legally responsible for labor rights violations in their supply chains—including by subcontractors and third-party suppliers—unless they prove due diligence and mitigation efforts.
Right to Unionize and Collective Bargaining:
Guarantee protection of workers’ rights to form and join trade unions in all countries of operation. Companies must recognize and bargain with legitimate labor representatives.
Safe and Decent Working Conditions:
Mandate compliance with ILO Core Labor Standards: limits on working hours, overtime pay, access to rest breaks, adequate ventilation, and protections from hazardous materials or abuse.
Living Wage Requirements:
Enforce payment of a living wage—not just the legal minimum wage—in all supplier contracts, adjusted for regional cost of living. Independent audits will verify compliance.
Worker-Led Monitoring and Grievance Systems:
Require confidential complaint mechanisms that are independent, accessible, and locally administered. Whistleblower protections must be guaranteed.
Ban on Forced Labor and Retaliation:
Immediate suspension of suppliers found to use forced labor, with clear remediation pathways. Protect workers from retaliation for reporting violations or joining unions.
Transparency in Public and Private Procurement:
Governments and companies must disclose suppliers and audit results for all public procurement and major private supply chains, empowering civil society monitoring.
Possible Outcomes and Implications:
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