German automakers BMW and Mercedes-Benz are facing scrutiny over alleged forced labor practices within their supply chains linked to the Xinjiang Uyghur Region. A formal complaint has been lodged against both companies, along with Volkswagen, by the European Center for Constitutional and Human Rights (ECCHR) with the German Federal Office of Economics and Export Control (BAFA). The core issue revolves around the automakers’ purported failure to demonstrate adequate measures to mitigate the risk of forced labor in their supplier factories located in the Xinjiang Autonomous Uyghur Region.
This legal action comes in the wake of the German Supply Chain Act, effective since January 1, 2023, which mandates companies to undertake human rights due diligence. This law requires businesses to proactively prevent or eliminate forced labor within their operational spheres and supply networks. The complaint against BMW and Mercedes-Benz is further supported by the World Uyghur Congress (WUC) and the Association of Ethical Shareholders Germany, amplifying the pressure on these automotive giants.
Reports from credible sources paint a grim picture of the human rights situation in Xinjiang. A United Nations report on the region details severe repression and systematic forced labor targeting the Uyghur population by the Chinese government. Furthermore, research from Sheffield Hallam University and NomoGaia highlights the pervasive risk of forced labor throughout the automotive supply chain operating within the Uyghur Region. This report specifically names leading German automakers, including BMW and Mercedes-Benz, as maintaining supplier relationships with factories exhibiting strong indicators of forced labor involvement.
Miriam Saage-Maaß, Legal Director at ECCHR, emphasizes the systemic nature of the problem. “In the Uyghur Region, forced labor is state-sponsored, and the population is under mass surveillance. Independent factory audits, a common due diligence tool, are demonstrably impossible to conduct reliably in this context. Therefore, BMW, Mercedes-Benz, and VW cannot simply rely on audits to fulfill their human rights obligations.” Saage-Maaß urges BAFA to rigorously investigate the human rights monitoring mechanisms employed by these companies within their Xinjiang supplier facilities. She further asserts, “As long as credible and effective due diligence mechanisms are absent, these companies should cease their business activities in the Uyghur Region.”
BAFA, as the monitoring authority, is now tasked with examining the validity of the information presented regarding potential violations of the Supply Chain Act. The agency has the power to issue concrete recommendations and, if necessary, impose sanctions on companies failing to meet their due diligence responsibilities. The effectiveness of the German Supply Chain Act hinges on BAFA’s diligent execution of its mandate. Establishing clear and robust standards for “appropriate” preventive and corrective measures is crucial for the law’s success. BAFA’s actions are not only vital for protecting those affected by human rights abuses in supply chains but also for maintaining consumer trust and the integrity of the German economy.
Dokun Isa, President of the World Uyghur Congress, underscores the broader significance of this case. “The German Supply Chain Act is a landmark achievement. Now, its effectiveness must be demonstrated. Automakers like Mercedes, BMW, and Volkswagen have a clear responsibility to ensure they are not profiting from Uyghur forced labor.” This complaint builds upon ECCHR’s previous legal actions in 2021 against European fashion and textile brands facing similar allegations of benefiting from forced labor in the Uyghur Region, highlighting a sustained effort to hold corporations accountable for ethical supply chain practices. More information about ECCHR’s work on corporate responsibility and human rights violations in supply chains can be found here.
