20 March, 2025“For years, corporations have used voluntary codes of conduct to appear ethical while continuing to exploit workers. Past regulations lacked enforcement, leaving workers without real protection. Human rights due diligence (HRDD) laws could finally change this—if done right,” says IndustriALL general secretary Atle Høie, reflecting on why binding HRDD laws, backed by trade union involvement, are essential for corporate accountability, fair competition and stronger workers' rights worldwide.
HRDD laws are innovative additions to the instruments that grant workers the possibility to access justice in their work place. In the last century, companies presented their values in unilaterally decided codes of conduct aiming to show customers that they cared, all the while continuing to exploit their workforce. Most of these codes of conduct did not even reference the most fundamental trade union rights; the right to organize and the right to bargain collectively.
Once exposed the pressure from society at large forced governments and companies to look for more convincing ways of showing respect for fundamental workers’ rights. We got the OECD guidelines for Multinational Companies, the UN Global Compact, the ILO MNE Guidelines and the UN Guiding Principles.
All of these put more scrutiny on the ways companies operate, but they were still mostly voluntary. They were also difficult and time consuming to use; you had to be resourceful, and you had to be connected. Unions in the developing world who represent the exploited workers were neither, despite their affiliation to global trade union federations (GUFs). The GUFs themselves developed tools like global framework agreements. These were more effective, but still limited in scope.
From empty promises to real accountability
HRDD has the potential to be a game changer. We are talking about legislation with the possibility of punishing companies that do not live up to the standards they say they respect.
However, there is a big question mark. We've been misled for years by auditing firms conducting superficial checks on code of conduct implementation, international obligations and compliance with established standards. The same risk exists with HRDD legislation. Many laws allow for this type of validation, but if trade unions accept it, we risk ending up with yet another ineffective instrument—no stronger than what already exists.
What makes HRDD a revolutionary concept is its shift toward active trade union participation. No outsourced audits that can be bought, no self-regulation—just genuine validation from those directly affected by workplace violations. By involving unions both in the company’s home country and at production sites, we can achieve a more accurate and unfiltered view of on-the-ground realities, the risks at hand, and the necessary steps for real improvement.
For HRDD to drive real change on the ground, unions must be actively involved. However, many lack the education, experience and confidence needed to navigate this process effectively. The HRDD Competence Centre can help bridge this gap, making its role crucial. But it’s not enough. As a global union, we must push unions in home countries to take responsibility for their supply chains while also convincing affiliates in production countries that HRDD can be a game changer. Given past disappointments with other instruments, we must acknowledge and respect their scepticism while demonstrating why this time can be different.
But imagine that a company does its due diligence in a big factory in a production country with full involvement of the local union and workers. The result will be a true representation of the reality in that factory, a truth from which the company cannot hide. We know that most factories have challenges that the parent company might not even be aware of. With strong legislation in place, companies will be compelled to take action, turning accountability into a legal obligation rather than a choice.
If implemented effectively, I am convinced that HRDD legislation will benefit the big European corporations. These companies face high expectations regarding their commitment to human rights, and many already invest in ethical practices—yet they are undercut by competitors that ignore these responsibilities without consequence. Binding legislation will create a level playing field and as such also create supply chain resilience which will benefit the whole supply chain.
HRDD legislation will also enhance the credibility of global union-led initiatives. The Accord on Fire and Building Safety, which began in Bangladesh and has expanded to Pakistan—with a third country soon to follow—gives affiliated brands a head start in meeting their HRDD obligations. Similarly, the complaint mechanisms established through our ACT cooperation with various brands reinforce accountability. This approach benefits both workers and responsible companies, making it a win-win—one that we must actively promote to more brands.
Building union power through the HRDD Competence Centre
The HRDD Competence Centre will be crucial in advising unions on the new legislation, how it can be used and how to protect workers’ rights. It will be key in developing training materials and building capacity in our unions, and the Centre might even become important for companies who want to do the right thing.
It is important that the new German government stays committed and does not backtrack on what is arguably the most promising legislation in this area. Likewise, the European Union must uphold its ambition with the Due Diligence Directive. For the first time, due diligence is becoming compulsory, offering real hope to millions of workers.
We will do our part. The HRDD Competence Centre will do its part. And if governments finally step up to their responsibilities, we can hold companies accountable. This could mark the beginning of a new era for trade union rights.