German Automakers Say Measures in Place to Prevent Uyghur Forced Labor in Supply Chains
BMW, Mercedes-Benz and Volkswagen each told us in emailed statements early on June 22 that they can’t directly comment on allegations in a forced labor complaint purportedly filed against them in Germany, because they have not seen the contents of the complaint. But they each said they do set standards for labor in their supply chains, and verify compliance with those standards.
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The European Center for Constitutional and Human Rights filed the complaint under the German Supply Chain Act, alleging the three automakers are not carrying out due diligence requirements under the law despite reports of Uyghur forced labor being used by their Chinese suppliers (see 2306210050).
“Since 2014, all direct suppliers to the BMW Group have been contractually obliged to comply with” environmental and social standards, a spokesperson for BMW said. “These standards also include the preventive measures required by law. All suppliers must also contractually pass on these requirements to sub-suppliers and verify their compliance. The BMW Group continuously monitors compliance with the requirements and consistently investigates potential breaches of the required standards,” the spokesperson said.
Commenting directly on the Sheffield Hallam University report heavily cited by the complaint (see 2212060054), a Mercedes Benz spokesperson said the company expects compliance with human rights and environmental standards “also from our business partners, which includes good working conditions as well as free choice of employment and environmental protection. This applies to suppliers, their employees and their subcontractors. Mercedes-Benz calls on its direct suppliers to apply the standards in their upstream value chains and to monitor their compliance,” and the company “regularly makes spot checks with its suppliers in China and other countries,” the spokesperson said.
Also commenting on the Sheffield Hallam University report, a spokesperson for Volkswagen Group said it requires its suppliers to reject all use of forced labor and human trafficking, and deems suppliers ineligible if a supplier does not meet its requirements. The spokesperson also said that, “if the Volkswagen Group learns of allegations, it investigates them immediately by using our ‘Supply Chain Grievance Mechanism.’ Serious violations such as forced labor could result in termination of the contract with the supplier if mitigation measures fail.”