On 26 June 2024, SOMO (Centre for Research on Multinational Corporations) and China Labour Bulletin published a report about Chinese workers’ struggles amid global supply chain shifts and the need for responsible business practices. As major brands relocate production from China due to economic and geopolitical factors, Chinese workers in the apparel and electronics sectors are experiencing significant hardships, including payment struggles and job losses. The relocation of factories has led to reduced orders, wage delays, and inadequate compensation for the affected workers. The report emphasises the need for global brands to consider the human rights impact of their sourcing decisions and prioritise the well-being of low-wage workers in their supply chains.

As Nordd Leather factory closed down suddenly, workers gathered to demand their overdue wages and social insurance fees. Unions at various levels failed to intervene, even when workers had made complaints months ago. Ultimately, the landlord and the Tax Bureau took care of the payment. Leather brands’ cost-cutting strategies possibly suppressed workers’ conditions. Recent Milan court rulings highlight that leather brands should monitor suppliers’ labour conditions; otherwise, they may face legal penalties.

In late March 2024, the auto parts supplier Chongqing Huguang saw a large number of hourly workers gathering outside the factory gate to protest against the factory’s failure to arrange work shifts, which meant that workers could not complete enough working hours to receive the gratuity. Factory security with helmets and restraining poles were seen confronting the workers on online videos.

China Labour Bulletin (CLB) found that Chongqing Huguang’s parent company is a supplier of auto OEMs including Volkswagen, Audi and Mercedes-Benz. CLB identified several possible labour violations, regarding its employment practices, excessive working hours, and union’s inaction. German companies in its downstream have a responsibility to conduct due diligence in accordance with the requirements of the German Supply Chain Act.

The global apparel industry’s contraction has led to widespread protests in China and Southeast Asia. In this article, China Labour Bulletin (CLB) illustrates workers’ collective efforts to defend their rights during the 2023 market downturn. CLB argues that international garment brands should be involved in monitoring suppliers’ labour practices across vast production networks. Workers and unions need to utilise new due diligence legislation and tools to coordinate and fight against a global challenge.

In 2023, China Labour Bulletin (CLB) recorded a peak of collective actions in the auto industry since 2015. Intense competition and EV transition hit workers of various companies. Worker grievances include layoffs and lack of severance pay, overdue payments, reduced wages and increased workload. Just transition initiatives by German and US unions are worth learning.

In 2023, strike cases were recorded in Chinese auto parts factories supplying for German multinationals. Causes include relocations, overdue payments and contaminated food. As the German Supply Chain Act came into force in 2023, the large German auto companies downstream have to ensure their suppliers comply with the human rights and labour rights standards. China Labour Bulletin followed up on a strike case by urging Volkswagen to investigate the potential labour violations, and the communication is ongoing.