Hyundai Motor and Kia have been sued for allegedly certifying to California and other government agencies that their vehicles met federal labor standards despite illegal labor practices in their U.S. supply chain, including child labor and prison labor.
Labor-law controversies involving Hyundai subsidiaries and suppliers have circulated for years, and the new lawsuit suggests the companies could again be drawn into allegations of unlawful workplace practices.
According to LA Superior Court, the nonprofit Jobs to Move America (JMA) filed suit on November 13 against Hyundai Motor America (HMA), led by president Jose Muñoz, Hyundai Motor Company (HMC), Kia America, Hyundai Mobis, and Glovis America.
The complaint states that Hyundai and Kia knew about labor-law violations in their supply chain but failed to take corrective action. It argues that the companies operated unsafe worksites that led to repeated injuries and preventable deaths.
JMA also alleges that the automakers continued to certify compliance with California’s high-road standards, which require supply chains free of child, forced, and prison labor, while supplying vehicles to public agencies under those certifications.
In its statement, JMA said state, city, and county agencies in California are major purchasers of Hyundai and Kia vehicles, adding that the companies promote alignment with California’s values “despite this being untrue.”
Political leaders have also responded. Maria Elena Durazo, a California state senator, and Hugo Soto-Martinez, an LA City Council member representing District 13, warned at a joint news conference that public-sector contracts could be jeopardized if the allegations are substantiated.
According to the complaint, facilities in Alabama and Georgia repeatedly used prison labor, failed to provide required PPE, ignored industrial-safety standards, and neglected workers’ injuries and illnesses.
The filing further states that HMA used children as young as 13 in vehicle production. Evidence cited in the complaint shows the U.S. Department of Labor found that a 13-year-old worked 50 to 60 hours per week at Hyundai Motor Manufacturing Alabama (HMMA) and its first-tier supplier SMART. Last September, the federal court in the Middle District of Alabama found that HMMA could be held liable as a joint employer for the minor.
The plaintiffs argue that Hyundai and Kia exercise substantial control over supplier operations and therefore cannot avoid responsibility for supplier actions.
As of November 13, Hyundai Motor and Kia had not issued an official response to the lawsuit.
BY HANKIL KANG [kang.hankil@koreadaily.com]
