Workers in Pakistani textile factories are systematically subjected to labor rights violations. In addition to frequent violations of wage regulations, the vast majority of workers do not possess written contracts. Many do not even receive the statutory minimum wage, are employed through third parties, perform piecework and are not covered by social security or pension insurance. The German company KiK, for example, allegedly allows its supplier Mount Fuji to produce under such conditions.

KiK likes to portray itself in public as a pioneer in matters of human rights due diligence. The company claims to have learned its lesson after the fatal fire in 2012 at the Ali Enterprises textile factory, whose plaintiffs we supported in their lawsuit against KiK. However, reports from the ground show that the company still refuses to take genuine responsibility for compliance with human rights standards in its supply chain.

The LkSG complaint now submitted by the Pakistani trade union NTUF and affected Pakistani textile workers against KiK includes the following allegations:

• Circumvention of labor- and trade union rights: The Pakistani supplier Mount Fuji systematically violates labor laws, in particular by withholding fair wages and suppressing union organizing. Shortly after signing an agreement with NTUF to respect local labor laws, Mount Fuji organized a sham election of a supposed workers' council. Shortly after, 144 workers were dismissed, including union activists.
• Failure to fulfill human rights due diligence obligations: KiK did not implement effective measures to address the documented violations by its supplier. Once again, it instead relied on its suppliers promises and dubious social audits by consulting companies – in spite of clear signs of their unsuitability.
• Uncritical approach to its own purchasing practices: The corporation refused to seriously address its own role in, as well as potential contribution to, violations through price pressure on suppliers and last-minute order cancellations.

The complaint was preceded by a survey of 350 workers from 20 textile factories in Karachi, Pakistan's textile production center, conducted jointly by ECCHR, FEMNET and NTUF in 2023. The survey confirmed the structural nature of the labor rights violations within factories that supply major European brands. Almost one fourth of the workers interviewed were not even paid the legal minimum wage, while most of those interviewed had no written employment contracts, were employed through third parties, performed piecework and had neither social security nor pension insurance. As a result, almost none of the workers surveyed received a living wage.

In September 2023, NTUF, FEMNET and ECCHR filed an internal complaint with KiK and other large textile companies in response to these conditions – an option that has been available since the introduction of the German Supply Chain Act.

KiK initially presented itself willing to engage in dialog and called on Mount Fuji to sign an agreement with NTUF to uphold labor laws. At the same time, however, KiK refused to enter into the agreement itself and take responsibility for its implementation and enforcement in practice. Unsurprisingly, the supplier subsequently showed little interest in actually complying with the agreement. Shortly after the agreement was signed in February 2024, the supplier attempted to install a supposed workers' council in the factory by holding a fake election. Shortly after, 144 workers were dismissed without notice, including those who had protested against the sham election. Mount Fuji dismissed protests by NTUF against this as undue interference. The unacceptable conditions on site continue to this day.

With the complaint submitted in June 2025, the complainants are calling on the BAFA, as the authority responsible for enforcing the LkSG, to ensure that KiK complies with its legal due diligence obligations and takes effective measures to remedy and prevent future human rights violations along its supply chain.

For the first time ever, the complaint also includes a third-party appeal by affected parties against a decision by the BAFA on the basis of the Supply Chain act. In September 2024, it became known that the authority had taken action on its own initiative and determined that it was unable to identify any violations of the LkSG by KiK with respect to the situation in Pakistan – without consulting NTUF or other affected parties beforehand. This decision violates the rights of NTUF and the affected workers protected by the LkSG.

The complaint against KiK underscores why a strong supply chain law is needed. In order to protect people and the environment, it is not enough to rely on voluntary commitments by companies. Instead, there needs to be clear legal obligations and tangible sanctions in the case of violations. Together with our partners, we use the LkSG to combat labor rights violations and hold companies accountable for effectively implementing their due diligence obligations.

Politically, the LkSG has been under massive pressure since its adoption. The new German government has announced that it will abolish the reporting obligations of the LkSG and limit sanctions only to “massive human rights violations.” In view of the EU Corporate Sustainable Due Diligence Directive (CSDDD) that entered into force one year ago, the government allegedly wants to prevent “excessive regulations.” Instead of weakening the law, however, what is needed is more effective implementation in the interests of those affected. The LkSG should be amended in a way that aligns with the EU CSDDD – without rolling back the advances of the current LkSG.