Pakistani textile workers, the Pakistani trade union National Trade Union Federation (NTUF) and the European Center for Constitutional and Human Rights (ECCHR) point to serious grounds for violations of the Supply Chain Due Diligence Act (LkSG) by the German discount clothing chain KiK. They have thus filed a complaint against KiK with the Federal Office of Economic Affairs and Export Control (BAFA).
The complaint focuses on labor rights violations at the Pakistani supplier factory Mount Fuji. In the eyes of the complainants, KiK has not responded appropriately to the violations – despite the fact that it is legally obliged to do so.
Allegations against KiK:
- Circumvention of labor and trade union rights: Mount Fuji systematically violates labor laws, in particular by withholding fair wages and suppressing union organizing. 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 supplier’s promises and dubious social audits by consulting companies – in spite of clear signs that they were unsuitable.
- 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.
Although the alleged abuses continue on the ground and despite clear indications that the measures taken have been ineffective, KiK publicly portrays its actions as a success.
According to Nasir Mansoor, General Secretary of NTUF: “KiK is selling superficial, ineffective measures as progress, while the affected workers in Pakistan continue to work in precarious conditions and we are hindered in our trade union work.”
As early as September 2023, the organizations filed an internal complaint demanding that KiK uphold its legal due diligence obligations and take appropriate and effective measures to ensure that workers in its supplier factories receive at least the local minimum wage. The company initially showed a willingness to engage in dialog and requested its supplier to sign an agreement to comply with labor laws. However, when it became clear shortly afterwards that the supplier was not prepared to comply with the agreement, KiK refused to take any real responsibility for its enforcement.
First-time-ever third-party objection to a BAFA decision – Call for a new assessment with the involvement of those affected
For the first time, the complaint also includes a third-party objection against a BAFA decision on the LkSG. In September 2024, it became public that the export authority, acting on its own accord, had certified to KiK that it was unable to establish any violations of the LkSG with respect to its operations in Pakistan – without consulting with NTUF or other affected third parties beforehand. This violates the rights of those affected. The organizations are calling for a new comprehensive and independent investigation into whether KiK violated the LkSG. In addition, they seek the adoption of effective measures to remedy and prevent future human rights violations along the supply chain. In this context, the close involvement of the trade union NTUF and the affected workers is of central importance.
“The KiK case is a prime example of why we need the Supply Chain Act, but also of what is currently dysfunctional about how the law is applied. It needs to be consistently implemented and enforced, with the genuine involvement of those affected, such as trade unions like NTUF. Instead, we are seeing once again how companies shirk their responsibility – enabled by an administrative authority that increasingly threatens to hollow out the law through its limited monitoring practices,” says Annabell Brüggemann, Senior Legal Advisor at ECCHR.
Those affected need strong laws
Alongside ECCHR and NTUF, the non-governmental organization FEMNET was also involved in the talks with KiK from the outset. With its expertise on labor- and women's rights in the garment industry, especially in Asia, and through its continuous exchange with local trade unions on the ground, FEMNET has an in-depth understanding of the working conditions in the region. Sina Marx from FEMNET adds: “The KiK case is also politically relevant: It shows that the change of course currently being discussed regarding the LkSG jeopardizes the protection of those affected. The German government must counter these developments instead of weakening, not to mention abolishing, the law.”
