French Southern Territories: Due Diligence Law a Game-Changer for Worker Rights
For over a decade, the CFDT (Confédération Française Démocratique du Travail) has been fighting to obtain whistleblower rights and protection. Recognizing freedom of speech among workers is not only essential for democracy within organizations but also crucial for professionals’ responsibility in their daily work.
A New Era of Transparency and Accountability
On March 28, 2017, France’s Parliament adopted a landmark law establishing due diligence obligations for companies, including their subsidiaries and subcontractors. This historic step towards better human rights and environmental protection has far-reaching implications for businesses operating globally.
Who is Affected by the Law?
The law concerns French companies with at least:
- 5,000 employees (including subsidiaries)
- 10,000 employees (including subsidiaries) with their headquarters in France or abroad
All business sectors are covered, ensuring that no industry is left behind.
What Does the Law Require?
Companies must establish and implement a due diligence plan, which includes:
Key Components of the Plan
- Mapping risks to identify, analyze, and rank them
- Regular assessment of subsidiaries, subcontractors, and suppliers with established commercial relationships
- Appropriate actions to mitigate risks or prevent serious violations
- An alert mechanism to collect potential or actual risks discussed with representative trade unions
- Monitoring schemes to follow up on implemented measures and assess their efficiency
Trade Union Involvement
The law ensures that trade unions play a crucial role in the due diligence process. This includes:
Key Aspects of Trade Union Involvement
- Direct participation of unions in defining and establishing plans: Unions contribute by requesting corporate management’s involvement in preliminary discussions.
- Due diligence: A topic for transnational agreements, involving international union federations and affiliates, supporting development of union activities at European and global scales.
- Workers’ representatives acting in Corporate Governing bodies: Involved in Corporate Social Responsibility (CSR) policy processes, executive management and Board members should be alerted and made aware of this due diligence.
- Involvement of European Work Councils and European Society Councils: Fitting to take up this issue, they should participate in information and consultation processes during plan elaboration.
European Protection for Whistleblowers
The European Commission recently introduced a project on a directive on whistleblower protection, safeguarding cross-border workers. This proposal covers self-employed, consultants, and volunteers, enabling avoidance of worker risks due to fragmented legislations.
Best Practices: Orange’s Due Diligence Plan
French telecom giant Orange, with a strong presence in Africa, is subject to the due diligence law. UNI Global wrote to management asking for union involvement in plan elaboration, contributing to enriching the plan. French unions were also invited to formulate proposals, which are still being considered.
Conclusion
The French Southern Territories’ due diligence law marks a significant step towards protecting worker rights globally. As companies operating internationally increasingly recognize the importance of transparency and accountability, this legislation will set a new standard for responsible business practices. The European Commission’s project on whistleblower protection is also a positive development, ensuring that workers are shielded from risks across borders.