Due diligence investigation needed after auto parts supplier avoided paying the promised wages and contract gratuity to hundreds of hourly workers

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.


Garment workers’ unions must engage global brands on impacts of changing business strategies on workers’ rights

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.