German automotive giants Bmw And Mercedes-Benz are facing scrutiny over allegations of forced labor within their supply chains. A formal complaint has been lodged against them, alongside 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? A lack of transparent and verifiable documentation proving these companies are diligently addressing the risk of forced labor in their supplier factories, particularly those located in the Xinjiang Autonomous Uyghur Region. This action throws a spotlight on the responsibilities of major car manufacturers to uphold human rights throughout their global operations, especially concerning supply chains that extend into regions with known ethical challenges.
The complaint comes in the wake of the German Supply Chain Act, effective since January 1, 2023. This legislation mandates that companies undertake human rights due diligence, implementing measures to prevent and eliminate forced labor within their networks. The ECCHR, supported by the World Uyghur Congress (WUC) and the Association of Ethical Shareholders Germany, argues that BMW, Mercedes-Benz, and VW have fallen short of these obligations. Their concern is deeply rooted in credible reports highlighting the systemic repression and forced labor of Uyghur people in the Xinjiang region, as detailed in a UN report and further substantiated by research from Sheffield Hallam University and NomoGaia. These reports indicate that the automotive supply chain within the Uyghur Region is highly susceptible to forced labor practices, potentially implicating major automakers like BMW and Mercedes-Benz who maintain supplier relationships in the area.
Miriam Saage-Maaß, Legal Director at ECCHR, emphasizes the severity of the situation: “In the Uyghur Region, forced labor is state-sponsored, and pervasive surveillance makes independent audits virtually impossible. Companies cannot simply rely on standard audits to ensure human rights due diligence.” She further states, “BAFA must urgently investigate how BMW, Mercedes-Benz, and Volkswagen are monitoring human rights standards within their Uyghur Region supplier facilities and ensure adherence.” The ECCHR advocates for a strong stance, suggesting that companies should cease business activities in the region if credible and effective due diligence mechanisms cannot be demonstrated. This puts significant pressure on brands like BMW and Mercedes to prove the ethical integrity of their supply chains.
BAFA, as the monitoring authority, is now tasked with examining the validity of these forced labor concerns and the responses from BMW and Mercedes-Benz. They are expected to make concrete recommendations and, if necessary, impose sanctions for non-compliance with the Supply Chain Act. The effectiveness of this act hinges on BAFA’s diligence in establishing clear benchmarks for “appropriate” preventative and corrective measures. The agency’s actions will be crucial in demonstrating the law’s impact and ensuring that companies like Mercedes and BMW are held accountable to ethical sourcing standards. This responsibility extends not only to the Uyghur people affected by forced labor but also to consumers and the broader economy, demanding transparency and ethical conduct from leading automotive brands.
Dokun Isa, President of the World Uyghur Congress, reinforces this point: “The German Supply Chain Act is a vital step, but its effectiveness must be proven. Automakers like Mercedes, BMW, and Volkswagen have a clear responsibility to guarantee they are not profiting from Uyghur forced labor.” This complaint against BMW and Mercedes-Benz is part of a broader effort by ECCHR, who previously filed complaints against European fashion and textile companies facing similar allegations related to the Uyghur Region. The focus now is firmly on the automotive sector and whether luxury car brands like BMW and Mercedes-Benz can demonstrate their commitment to ethical supply chains and human rights in every corner of their global operations.
