Modern Slavery in the Car Manufacturing Industry: Examining Forced Labour and Human Trafficking in Supply Chains

Previously we have explored modern slavery and high risk supply chains such as fast fashion.  As we have learnt, it is prevalent across most industries worldwide, however, a recent probe has investigated forced labour within the car manufacturing industry.  Despite progress in recent years, forced labour, human trafficking and other forms of exploitation continue to be a significant on-going problem in the production of vehicles and their component parts.  A new report found “massive and expanding” links between major car companies and China’s Xinjiang region.

Xinjiang is a Chinese region where evidence has emerged of human-rights abuses committed by the Chinese Government against Uyghur Muslims, including forced labour, government surveillance, forced sterilisation and re-education camps.

The report by Sheffield Hallam University and Helena Kennedy Centre for International Justice, (which works on high profile projects in a variety of human rights) found “practically every major car part” had links to Xinjiang and that over 100 car and parts manufacturers were exposed directly or indirectly to goods made with forced labour.

8 major car manufacturers  including Ford, Tesla and General Motors are facing an inquiry from  Senate Finance Committee Chair Ron Wyden.  A key statement from the Senate Finance Committee states that “Unless due diligence confirms that components are not linked to forced labour, car manufacturers  cannot and should not sell cars in the United States that include components mined or produced in Xinjiang”.  Currently the United States considers the Chinese government’s brutal oppression of Uyghurs in Xinjiang an “ongoing genocide”.

A key statement from the Senate Finance Committee stats that “Unless due diligence confirms that components are not linked to forced labor, automakers cannot and should not sell cars in the United States that include components mined or produced in Xinjiang”.  Currently the United States considers the Chinese government’s brutal oppression of Uyghurs in Xinjiang an “ongoing genocide”.

The investigation comes following the Uyghur Forced Labour Prevention Act that bans products from Xinjiang unless organisations can prove their supply chains are free from forced labour.  The European Union also passed legislation prohibiting products made under forced labour.

Previously, Volkswagen have said that “no forced labour” was found at their Xinjiang plant.  However the recent report noted that one of the “most shocking new developments” in the past five years was that forced labour was now used throughout China and their factories which are part of the supply chain of major international organisations.

The report has a number of recommendations for buyers concerned about forced labour in Xinjiang. They include;

1. To conduct thorough due diligence on suppliers and their suppliers, including regular inspections and audits to ensure compliance with ethical standards and labour laws.
2. Implementation of a robust and transparent supply chain management system that includes regular communication and collaboration with suppliers.
3. To establish a zero-tolerance policy for forced labour and human rights violations within supply chains, with clear consequences for non-compliance.
4. Investment in technology and tools that can support, identify and prevent modern slavery, including data analytics, machine learning and blockchain.