Slavery concerns over NSW electric bus imports

The Anti-Slavery Commissioner has been asked to investigate concerns that new electric buses commissioned by the Minns government have a “high risk” of links to forced labour.

Concerns that new electric buses commissioned by the Minns government have a “high risk” of links to slavery and child labour, have led to calls for the Anti-Slavery Commissioner to investigate.

The NSW opposition has said there are grave concerns that Transport for NSW failed in its “due diligence” to assess the risks of modern slavery prior to approving two electric bus suppliers Foton Mobility Distribution (FMD) and VDI-Yutong in March last year.

Shadow treasurer Damien Tudehope wrote to the NSW Anti-Slavery Commissioner on Monday requesting an investigation into the procurement of the Chinese-made bus parts.

He wrote that an investigation was needed to “ensure that the NSW government does not purchase electric buses from companies with a high risk that forced labour is used in any part of their supply chain”.

NSW shadow Treasurer Damien Tudehope has written to the Anti-Slavery Commissioner to investigate. Picture: NewsWire / Christian Gilles

This comes after The Daily Telegraph revealed earlier this month that both companies were importing “Ikea-style” flatpack buses from China that would be bolted together by local workers, despite government promises the buses would be manufactured locally.

With the electric buses essentially coming from China, concerns have arisen over the use of Chinese Communist Party-linked battery company, Contemporary Amperex Technology Limited (CATL), which is supplying the EV batteries for both FMD and VDI-Yutong.

Of the 319 new electric buses the NSW government announced it would deliver by 2028, nearly 200 of those will contain CATL batteries.

One of Transport for NSW’s existing bus fleet. Picture: Rohan Kelly

Multiple reports have flagged concerns around the batteries, with US senator Marco Rubio demanding the Department of Homeland Security blacklist the company in June last year, pointing to concerns that the company’s supply chains “were deeply connected to forced labour and the ongoing genocide of Uyghurs in China”.

Additionally a report into global supply chains by independent Swedish researcher Globalworks in June 2023 found that CATL was heavily connected with lithium and nickel suppliers known for their use of forced labour. This includes state-owned Chinese paramilitary organisation Xinjiang Production and Construction Corps, which is sanctioned by the US for alleged human rights abuses relating to the oppression of the Uyghur population and the running of internment camps.

A visitor looks at a Shenxing Plus battery pack for electric vehicles in the showroom at the headquarters of Chinese EV battery maker CATL (Contemporary Amperex Technology Co., Limited) in southeast China. Picture: Greg Baker / AFP

Additionally the report found that CATL has links to multiple cobalt mines in the Democratic Republic of Congo, where risk of forced labour, including child labour is “very high”.

In a statement released at the time CATL said accusations around connections to forced labour were “groundless and completely false”.

While both FMD and VDI-Yutong are technically Australian owned, they both have close ties to major Chinese bus manufacturers.

Transport for NSW has indicated it has no plans to investigate the supply chains of either company, saying it is for suppliers to ensure slavery is not occurring in their supply chains.

“All suppliers appointed to deliver these buses are required to undergo an independent financial assessment and comply with the applicable provisions of the Modern Slavery Act 2018,” the spokesperson said.

“Suppliers are required to take reasonable steps to make sure that Modern Slavery is not occurring in the supply chain through a formal deed of standing offer.”

The spokesperson said TfNSW will review the provisions in the deed, with the view to strengthening the protections against modern slavery.

NSW Anti-Slavery Commissioner Dr James Cockayne received a letter from Mr Tudehope over the electric buses on Monday. Picture: Danielle Smith

Australian Manufacturing Workers Union secretary Bradley Pidgeon backed calls for an investigation into the two companies, saying the Minns government needed to ensure all bus components were not connected to forced labour.

“We would have concerns if our members are exposed to batteries that are problematic,” he said.

“We don’t support any procurement of any company that has breached modern slavery provisions.”

Strategic Analysis Australia director Peter Jennings agreed an investigation was needed and that the government should be focusing on procuring from Australian companies.

“Businesses and governments know that there are problems with Chinese-sourced materials but usually they look the other way because they are cheaper,” he said.

“Forced labour and modern slavery is relevant to a great many Chinese industries – including ones that export to Australia.”

Both VDI-Yutong and Foton Mobility Distribution were contacted for comment.

Originally published as Slavery concerns over NSW electric bus imports