The inspectors commissioned by VW said they found no evidence of forced labor at the controversial plant in the Chinese province of Xinjiang. “We were unable to find any evidence or evidence of forced labor among employees,” said Markus Löning from the consulting firm Löning Human Rights & Responsible Business on Tuesday in Wolfsburg when presenting a management summary of his report. Löning’s company was commissioned by VW in the summer to investigate the working conditions at the site for human rights violations.
The Urumqi location, which opened in 2013, has been criticized for possible human rights violations in the province inhabited by Uighurs. According to VW, the location only has around 197 employees who only prepare vehicles for delivery. Car production has now stopped there and the number of employees has been reduced from 650 to under 200.
Conversations with employees
In order to check the working conditions, the employment contracts of all employees for the last three years and other documents were checked on site, said Löning. In addition, discussions were held with 40 self-selected employees. They were supported on site by two Chinese lawyers.
“The results of the audit of the plant in Urumqi show that no signs of forced labor were found within the site,” stated VW legal director Manfred Döss (65). “We will continue to take any evidence of human rights violations very seriously in the future. If there is any suspicion or information, we will investigate it.” VW follows international and national laws and obligations as well as internal processes and regulations.
First as general counsel, then as board member of the family holding company Porsche SE, Döss has so far defended all claims for damages from the time of the takeover battle between Porsche and Volkswagen AG from; Billions of euros are still being sued. He also kept the damage from the diesel scandal under control, ensured that the monitor Larry Thompson (77) appointed by the US authorities did not become too annoying – and then even rose to the company’s board of directors at the end of 2020.Total compensation 2022
: around 3.3 million euros; an additional 1.35 million euros were addedat Porsche SE
. VW even recently extended the age limit for the 65-year-old.
Investigations limited to Urumqi
However, consultant Löning admitted, there is China particular challenges for such independent investigations. “The situation in China and Xinjiang and the challenges in collecting data for audits are well known.” Therefore, they only checked the working conditions of the employees in the factory itself. “Our mandate was limited to the 197 employees of the Shanghai Volkswagen (Xinjiang) Automotive Company in Urumqi.”
Of the 197 employees, a good three quarters are Han Chinese, 47 belong to various minorities, most of them Uyghurs. “The employees are paid above average and have little to do,” said Löning, describing the working conditions at the location. No special monitoring measures could be identified. The inspectors were also able to move freely during their visit to the site. Löning was the Federal Government’s Human Rights Commissioner until 2013.
VW CEO Oliver Blume (55) announced in June after public pressure that to subject the work to an independent review. The US financial services provider MSCI had previously issued a warning to the Wolfsburg-based group because of the location. Human rights activists have long criticized VW for sticking with the plant, whose contract runs until at least 2029. They accuse the central government in Beijing of deliberately suppressing the Muslim Uyghur minority. Volkswagen had always denied that there could be human rights violations or forced labor at the location.
Investors are demanding more transparency
After the conclusion of the investigation into the Volkswagen plant in Urumqi in China, investors are calling on the car manufacturer to be more transparent. The publication of the audit is a step in the right direction, said Henrik Pontzen, who is responsible for sustainability issues at the fund company Union Investment, to the Reuters news agency on Wednesday. But VW has not yet reached its goal. “In China, audits cannot be a one-time exercise.” In addition, a functioning complaint management system must be established. “The weak one also remains Corporate governance an Achilles heel at VW.”
Ingo Speich, sustainability expert at Deka Investment, said the pressure from the capital market had worked. The review is a step in the right direction in terms of process and results. “More transparency in the value chain would also be desirable.” On the Frankfurt Stock Exchange, VW shares were last at the top of the DAX with an increase of up to 3.1 percent to 111.92 euros.