Volkswagen says that an audit it commissioned at its factory in Xinjiang, China, has found no signs of forced labor, some 18 months after a panel of United Nations experts and human rights groups expressed concern over practices of VW suppliers and operations in the region.
The audit was conducted by German human rights due diligence firm Loening Human Rights & Responsible Business GmbH. It included an inspection of employee contracts and salary payments for the 197 employees working at the site which VW operates alongside joint-venture partner SAIC Motors. The audit also included on-site interviews and was aided by two Chinese lawyers from a firm in Shenzhen.
Read: VW Denies Claims Of Forced Labor At SAIC Joint Venture Plant In Xinjiang
The German car manufacturer claims the audit was conducted in line with the SA8000 standard based on international human rights principles assessing areas including forced labor, health and safety, and child labor. However, Reuters notes that the site has not received an official SA8000 certification as Loening is not accredited to provide these certifications.
Operations at the factory have been cut dramatically since the Covid-19 pandemic with the number of employees dropping from 650 to the current 197. In its report, Loening says that the site now handles “technical commissioning and deliveries to the region” and said “the employees are paid above average and have little to do.”
The auditor acknowledged that collecting data for audits in China is well-known to be difficult.
VW came under fire for its Xinjiang operations with SAIC in June last year but the carmaker quickly responded, saying it fiercely opposes forced labor and that the factory is having a positive effect on the local people.
“I believe that the presence of SAIC Volkswagen leads to the situation improving for people,” ex-VW chief executive Herbert Diess said last year. “We travel there, and like everywhere in the world we ensure our labor standards are implemented, and that cultural and religious differences are respected.”
