McDonald’s Under Fire: Church of England Asset Manager Threatens Divestment Over Modern Slavery Concerns

The Church of England’s asset manager, CCLA Investment Management, has warned McDonald’s that it may divest its £89m stake in the company unless it improves its response to modern slavery concerns. The warning comes after trafficked workers from the Czech Republic were exploited in a Cambridgeshire McDonald’s franchise, with victims forced to work long hours, threatened regularly, and had their wages taken by gang members. Several perpetrators were jailed in December last year, but CCLA’s director for modern slavery, Dame Sara Thornton, criticized McDonald’s handling of the situation, saying the company’s response had been “poor.”

Thornton emphasized that McDonald’s UK chief executive’s description of the case as the work of an “infiltrating gang” was misguided, stating that “it was the workers who were the victims, not McDonald’s.” She added that if McDonald’s fails to engage and address the concerns, CCLA may reconsider its investment, with all options on the table. This move puts significant pressure on McDonald’s to demonstrate its commitment to combating modern slavery and protecting workers’ rights.

In response, McDonald’s condemned the crimes and praised the victims’ bravery during legal proceedings. The company claimed to be working with the anti-slavery charity Unseen and had strengthened systems to detect exploitation. However, CCLA’s warning highlights the need for more concrete actions to address modern slavery concerns and ensure that workers are protected from exploitation. The potential divestment of £89m in shares would be a significant blow to McDonald’s reputation and finances.