Are German carmakers exploiting Serbian workers?

Purple hair streaked with gray frames Mirjana Nesic's face. She is looking down at her hands and says that they are tired from work. She is an employee at the South Korea-owned automotive industry supplier Yura in Leskovac, Serbia. The 50-year-old says the painkillers she takes hardly help anymore.

Pressure at the Yura factory is intense, she adds and begins to talk about "psychological torture," unattainable targets and being forbidden to use the bathroom. Serbian media have even reported that workers are forced to wear diapers while on the job.

"I feel sick when I go in there," says Nesic. She needs medication to sleep.

For 13 years, Nesic has been producing automotive wiring for Yura in Leskovac — wiring that might eventually find its way into a sleek Mercedes or any other German carmaker the company supplies.

Yura is not the only parts supplier in Serbia where media and trade unions have uncovered violations of human rights and labor laws. Chinese company Linglong and the German supplier Leoni were also reported to be "exploiting" their workforces in the southeast European country. All these companies supply German automakers like Mercedes, Audi, Volkswagen and BMW.

Fear reigning at Serbian plants?

Since 2023 the German Supply Chain Act has been in effect with the aim of protecting workers like Nesic. The law holds companies responsible for ensuring compliance with human rights and environmental standards throughout their entire supply chains. This includes the right to workplace health and safety, fair wages, and the right to form unions.

Earlier this year, the Independent Union of Metalworkers of Serbia complained to carmakers Mercedes and Audi about working conditions at Yura. In their complaint, the union said workers are often exhausted, poorly paid and exposed to dangerous chemicals. Furthermore, the right to strike and hold union meetings had been violated.

Predrag Stojanovic, who is active in the union, told DW that he had experienced this firsthand during the COVID-19 pandemic when he advocated for protective measures at the workplace. He was eventually fired for it, but later took legal action and won the case.

Stojanovic and Nesic are among the few workers who dare to speak to the press. In June, Nesic joined about half the workforce at the Leskovac plant in a strike.

"Colleagues asked me how I had the courage to do it. Do they think that we are not afraid, too?" she says, adding that she felt things couldn't go on as they were.

Violations investigated by carmakers and authorities

Yura supplies premium German carmakers Mercedes and Audi. Audi, a subsidiary of Volkswagen Group, told DW in a statement that it is "reviewing" conditions at Yura, while Mercedes replied they are taking the matter "very seriously" and demanded an explanation from Yura after learning of the allegations.

Additionally, the company said it had hired an independent auditing firm to conduct an "internationally recognized sustainability assessment." Should any misconduct be found corrective actions would be taken, Mercedes stated. Yura had not responded to the allegations by our editorial deadline. 

The German Supply Chain Act allows affected individuals, unions and nonprofit organizations to take action against human rights violations or environmental breaches. Complaints can be filed with the Federal Office for Economic Affairs and Export Control (BAFA) in Germany. The office can also initiate investigations based on media reports and impose fines following an investigation.

The Serbian metalworkers union submitted a complaint to BAFA regarding exploitation at Yura in June 2024 but has yet to receive a response.

Annabell Brüggemann, a legal advisor at the European Center for Constitutional and Human Rights, says she's experienced BAFA's slow response to accusations from her own complaints, and criticizes that those affected are not involved in the procedure.

"Some cases have been ongoing for over a year, but we don't know what BAFA has demanded from the companies," Brüggemann told DW.

According to BAFA, they have received a total of 221 complaints since the new law was enacted, three of which are from Serbia. Out of the total, 161 cases were deemed unfounded, leaving 60 active complaints. BAFA says it has not imposed any penalties so far.

Public outcry across Serbia

The alleged violations have caused a public outcry in Serbia after several media, including cable news outlet N1, the weekly Vreme, news portal Juzne Vesti, as well as trade unions, reported that other automotive-industry suppliers in the country are also violating the rights of their workers.

Accusations were leveled, for example, against Germany-based company Leoni — majority-owned by the Chinese company Luxshare since 2024 — and the Chinese tire manufacturer Linglong.

Leoni is a key supplier for German carmaker BMW, while Linglong has ties to Volkswagen Group. Speaking with DW, two Leoni workers described working conditions as "exploitative," and another worker from Leoni's Prokuplje plant claimed her workday was marked by "psychological terror," citing "low wages, absurd targets and harassment."

In response to a DW request for comment, Leoni rejected the accusations, stating that "in any organization of this size, there will inevitably be a few individuals who act irresponsibly against internal rules and guidelines." Such behavior will lead to disciplinary action, up to and including dismissal, Leoni says.  

BMW told DW that it takes the accusations very seriously and has requested a statement from Leoni. Volkswagen responded by saying it does not comment on "individual potential" accusations against its suppliers, adding that it thoroughly and promptly investigates all reports.

The Supply Chain Act a law without teeth?

Brüggemann thinks that the problem with Germany's Supply Chain Act is that workers often do not know about it or even that their company is part of a supply chain to Germany.

Hendrik Simon, a political scientist at the Research Institute for Social Cohesion think tank, criticizes that the original draft was watered down in the political decision-making process so that "there is no clause on civil liability," for instance.

German advocates of stronger legislation are now pinning their hopes for improvement on the new EU Supply Chain Act, which was passed this year and must be adopted by Germany. It includes the possibility for claimants to sue companies for damages in civil courts in EU member states.

However, the worker at the Leoni factory in Prokuplje that DW spoke with feels nothing will change. "I will do everything I can to find another job," she says.

This article was originally published in German. It was compiled with the help of Journalismfund Europe, an independent nonprofit organization promoting investigative cross-border journalism.