German automotive giants BMW and Mercedes-Benz are under increasing pressure to prove the integrity of their supply chains amidst serious allegations of forced labor. A formal complaint has been lodged against both companies, alongside Volkswagen, with the German Federal Office of Economics and Export Control (BAFA) by the European Center for Constitutional and Human Rights (ECCHR). This action challenges the automakers to demonstrate that they are diligently addressing the risk of forced labor within their supplier factories, specifically those located in the Xinjiang Autonomous Uyghur Region.
The core of the complaint stems from concerns about the Xinjiang Uyghur Region, where reports indicate widespread, state-sponsored forced labor targeting the Uyghur population. Under the German Supply Chain Act, effective since January 1, 2023, companies are legally obligated to conduct human rights due diligence. This includes implementing measures to prevent or eliminate forced labor within their operations and supply networks. To date, BMW and Mercedes-Benz, along with VW, have not publicly provided sufficient documentation to assure compliance with these obligations in relation to their Xinjiang operations. The World Uyghur Congress (WUC) and the Association of Ethical Shareholders Germany are supporting the ECCHR in this legal challenge, amplifying the call for corporate accountability.
Reports, including a comprehensive UN assessment of the human rights situation in Xinjiang, paint a grim picture of repression and forced labor imposed upon Uyghurs by the Chinese government. Further research, notably from Sheffield Hallam University and NomoGaia, highlights the automotive supply chain as particularly vulnerable, with evidence suggesting that forced labor could permeate the entire sector within the Uyghur Region. This research directly links leading German automakers, including BMW and Mercedes-Benz, to supplier relationships with factories exhibiting indicators of forced labor practices.
Miriam Saage-Maaß, Legal Director at ECCHR, emphasizes the severity of the situation: “In the Uyghur Region, forced labor is state-sponsored, and the population is under systematic, mass surveillance. Reliable, independent audits of factories are demonstrably impossible under these conditions. Therefore, BMW and Mercedes-Benz, and other companies, cannot simply rely on audit reports to fulfill their human rights obligations.” Saage-Maaß further urges BAFA to investigate urgently “how BMW and Mercedes-Benz are monitoring human rights standards at their Xinjiang suppliers and to ensure adherence. The mechanisms they are using remain unclear. Until credible and effective due diligence is in place, these companies should suspend their business activities in the Uyghur Region.”
BAFA, as the monitoring authority, is now tasked with examining the evidence and information presented regarding potential violations of the Supply Chain Act. Their responsibilities include issuing recommendations to companies and, if necessary, imposing sanctions for non-compliance. The agency’s rigor in defining what constitutes “appropriate” preventative and corrective measures under the Supply Chain Act will be crucial in determining the law’s effectiveness. BAFA’s actions will not only impact those affected by human rights abuses in supply chains but also carry significant weight for consumer confidence and the integrity of the German economy.
Dokun Isa, President of the World Uyghur Congress, underscores the broader implications: “The German Supply Chain Act is a vital step forward. Now, its effectiveness must be demonstrated. Automakers like Mercedes-Benz and BMW have a clear responsibility to guarantee they are not profiting from Uyghur forced labor.” This complaint follows prior legal actions by ECCHR against European fashion and textile brands concerning similar allegations of benefiting from forced labor in the Uyghur Region, signaling a growing trend of legal challenges aimed at holding corporations accountable for human rights within their global supply chains.
