Aid organizations accuse Edeka and Rewe of violating the supply chain law

As of: November 3rd, 2023 11:24 a.m

Aid organizations accuse the supermarket chains Rewe and Edeka of violating the Supply Chain Act. One complaint speaks of starvation wages and a lack of occupational safety on plantations.

Several aid organizations have filed a complaint against Edeka and Rewe with the Federal Office of Economics and Export Control (BAFA) under the Supply Chain Act. Both supermarket operators worked with suppliers whom the organizations accused of serious human rights violations, according to a statement published today.

The complaint is supported by, among others, Oxfam, the Ecuadorian union of plantation workers (Astac), the Catholic relief organization Misereor and the European Center for Constitutional and Human Rights. The retail chains reject the allegations.

Pineapple and Banana plantations in focus

The complaint is about labor and human rights violations on suppliers’ banana and pineapple plantations in Ecuador and Costa Rica, the organizations said. The workers there are said to have been employed for starvation wages. They would also have had to work while the plantations were sprayed with potentially toxic pesticides.

According to the organizations, union members were fired or even mistreated if they spoke out against the abuses. The complaint is based on reports from plantation workers and unions as well as our own research in the production countries.

Edeka “cannot understand the allegations”

“We can confirm that we have received relevant information from Oxfam via our reporting platform,” said Edeka tagesschau.de with. After an examination, these were not confirmed with regard to the partner farms from which the company sources bananas. “We therefore cannot understand the allegations currently being made,” it continued.

According to the cooperative trading group, Edeka “clearly rejects” accusations that they are not sufficiently willing to talk. “We fundamentally distance ourselves from any labor and human rights violations and are very interested in any grievances being brought to our attention so that we can investigate them comprehensively.”

Rewe has “already taken numerous measures”

Rewe also “strongly contradicts Oxfam’s statements,” as does the group tagesschau.de announced. He has “already taken numerous measures” together with the suppliers and is also in contact with Oxfam. “Our position is clear: human rights are non-negotiable.”

Since 2019, Rewe has therefore been calling for “demonstrably binding framework conditions for compliance with human rights and environmental due diligence obligations that create equal conditions along the entire supply chain.” Purely national legislation is not enough: “We would like to see at least European harmonization – even better, an international solution,” said the supermarket operator tagesschau.de.

“Practical test” for that Supply Chain Act

According to Oxfam, the aid organization had already informed the two chains Edeka and Rewe about four incidents in the summer. According to the Supply Chain Act, supermarkets’ duty of care includes informing themselves about the conditions under which the products are manufactured. But some providers continued as before. Hardly anything has changed on site.

According to the information, the companies referred to quality seals for the goods that are intended to ensure the preservation of human rights during harvest and production. However, the organizations accuse the suppliers of manipulating the company controls – for example by only questioning workers who were previously selected by the plantation owners.

The submission of the complaints is also a “practical test” of how effective the implementation of the Supply Chain Act, which came into force on January 1st, is in Germany, explained Oxfam. This forces companies with more than 3,000 employees to ensure compliance with human rights and occupational safety standards throughout the entire supply chain.

The Federal Office must follow up on the information

The supply chain law obliges German companies to use their influence to make amends for damage in the producing countries, said Misereor economic expert Armin Paasch. “However, it does not explicitly oblige them to make reparation for damages. It also does not significantly improve the chances of success for those affected in claims for damages.” Paasch demanded that these gaps must be closed by the EU supply chain law currently being discussed.

The head of the fair economy department at Oxfam, Franziska Humbert, said that the Federal Office must now follow up on the complaints and give the supermarkets specific instructions on what they should do about it.

German organizations or trade unions can submit a complaint to BAFA. Depending on the severity of a violation, a fine of up to eight million euros or two percent of annual turnover can be imposed or the company can be excluded from public tenders.

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