Protecting labour rights, human rights and the environment in global value chains

We also welcome the statement from Baroness Jones that “the Government is clear on the need to prevent environmental harms and human and labour rights abuses in both private and public sector supply chains and will take an evidence-based approach as we assess the best ways to achieve this”. 1

Today we’re publishing the trade union movement’s call for new UK mandatory human and labour rights and environmental due diligence legislation to increase corporate legal accountability in domestic and global value chains, and promote decent work for all.

As workers, consumers and users of public services, we are connected to millions of workers around the world through global value chains. Internationalism is a core value of the trade union movement and this legislation would be welcomed by our international trade union colleagues.

“The demand for mandatory UK Human and Labour Rights and Environmental Due Diligence legislation resonates deeply with Africa’s vision for equitable global trade. This legislation is a unique opportunity to dismantle exploitative value chains, ensuring that Africa’s vast resources – particularly critical minerals – are extracted and processed in ways that uplift local communities, protect workers’ rights, and advance environmental sustainability. By fostering local value addition and supporting a just transition, this approach can redefine global partnerships, ensuring they are rooted in people-centred participation, justice, dignity, and shared prosperity for all.”

 Akhator Joel Odigie, General Secretary, ITUC-Africa.

Why is new legislation needed?

Violations of labour and human rights and environmental harms are widespread in global value chains. The voluntary approach to corporate responsibility and accountability hasn’t worked. We've seen  Boohoo’s sweatshops in Leicester; allegations of debt bondage and physical abuse by workers making rubber gloves for use in the NHS, at Supermax in Malaysia;  deforestation in Brazil; and evidence of Uyghur forced labour in solar panel supply chains, among myriad other harms.

This experience, combined with analysis of current UK legislation, shows that current UK regulations are not adequate to prevent violations of human and labour rights and environmental harms in global value chains, and when harms do occur – to ensure access to justice. New legislation would lead to better regulation of global value chains, promoting decent work, respect for workers’ rights in the UK and globally, and support a Just Transition to net zero.

The government should have due regard for meeting internationally recognised standards including the UN Guiding Principles on Business and Human Rights, which the government has committed to implement. These Principles set out a protect, respect and remedy framework, and include the corporate responsibility to respect human rights, which encompasses labour rights.

What is mandatory human and labour rights and environmental due diligence legislation?

This new legislation would mandate all organisations (including business and the public sector) to take all reasonable steps to prevent human rights and environmental harm in their operations, products and services. This would include subsidiaries and cover subcontractors and all suppliers – throughout the value chain.

The core components of a due diligence process include:

• identification: identifying adverse human and labour rights and environmental impacts

• risk assessment: conducting robust risk assessments, in consultation with independent trade unions

• integration: organisations must integrate due diligence into their policies and procedures

• preventive measures: take appropriate measures to avoid, prevent and mitigate adverse human and labour rights and environmental impacts

• grievance and complaints procedures: establish internal grievance and complaints procedures so workers can confidentially raise issues

• monitoring: monitor and review the effectiveness of their due diligence processes

• communication and reporting: communicate and meaningfully consult on their plans with stakeholders

• climate change: organisations must ensure their business/operating models and strategies are consistent with the long-term temperature goal of 1.5˚C, report on their emissions reduction objectives, and the plans put in place to achieve these. 

• trade union involvement: legislation should enable and provide for the participation and consultation of an organisation’s workers and their trade unions

• remediation processes: organisations must take remedial action to bring to an end, minimise and remedy adverse human rights and environmental impacts when they arise.

Due diligence requirements should be proportionate to the size of the business and severity of its actual and potential human rights impacts, as well as its leverage over its suppliers. Importantly, organisations that failed to carry out their legal obligations would be legally liable for harms relating to breaches of human rights, employment and labour rights and environmental standards.

Which workers would benefit?

Mandatory human and labour rights and environmental due diligence legislation would help protect all workers in global value chains, increase access to justice when harms occur, and promote decent work.

"New UK legislation mandating greater corporate accountability for global value chains would be transformative for advancing labor rights and women’s rights. By holding companies accountable for the conditions in their supply chains, we can ensure decent work for millions of workers worldwide, many of whom are women. Such legislation can drive systemic change and Just transition pushing businesses to prioritize fairness, dignity, and equity at every stage of production. Especially in the ongoing political, economic and climate crisis of Bangladesh, the garment workers need to have better social protection as well as respect for the right to freedom of association, safe and harassment free workplace and a living wage" 

Nazma Akter, President, Sommilito Garments Sramik Federation, Bangladesh, Executive Committee Member of IndustriALL Global Union

It’s important we stand in solidarity with international trade unionists and workers who are calling for stronger protections. This new legislation has the potential to transform working conditions in domestic and global value chains.

Read the full TUC briefing

• 1 UK Parliament (30 July 2024), ‘Business: Environment Protection and Human Rights’, available at: https://questions-statements.parliament.uk/written-questions/detail/2024-07-30/HL483