Towards a Global Value Chain Approach in Labour Law: Which Way Forward?

Since the last decades of the 20th century, multinational corporations (MNCs) have benefitted from the economic globalisation more than their employees. Despite the progressive integration of capital markets, the legal regulation of employment relations is still a national prerogative. Such situation has led to widespread practices of delocalisation and outsourcing in order to exploit differences in labour costs. In fact, global production systems are increasingly organised throughout long chains of independent legal entities driven by MNCs, which are commonly known as global value chains (GVCs). In light of the above, a change of the regulatory paradigm seems to be needed in order to counter this new imbalance of power. This paper thus aims to pave the ground for the adoption of a GVC approach in labour law, by exploring its theoretical and practical viability. In the first section, I identify some possible legal obstacles to such an approach. In particular, I focus on the two principles of legal independence and territoriality of law. Then, I investigate how such obstacles may be overcome. To this end, I analyse and compare the solutions offered by a few statutes addressing the social impact of the GVCs, e.g. the EU directive no. 2014/95 and the French law no. 2017-399. In fact, a number of acts impose liabilities on MNCs for their GVCs’ behaviours, albeit in a different fashion and with a different degree of compulsoriness. Advantages and disadvantages of each possible solution are discussed as well. Finally, I draw the conclusion that the adoption of a GVC approach in national labour laws could be the first step towards a new way to conceive employment relations, by filling the gap between formal and substantial employer. Besides, this approach would guarantee a higher protection for workers inasmuch as it is more consistent with the current practices of business.