Hyundai and Kia Face Lawsuit in U.S. Over Alleged Use of Exploited Child, Immigrant, and Inmate Labor

The U.S. subsidiaries of Hyundai Motor Company and Kia have been sued for allegedly violating California's Unfair Competition Law by using exploited labor-including child, immigrant, and incarcerated workers-in their supply chains. Hyundai and Kia have categorically denied the allegations.

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According to foreign media outlets such as the LA Times, the private nonprofit organization Jobs to Move America (JMA) filed a lawsuit against Hyundai and Kia in the Los Angeles County Superior Court on November 14. The purpose of the lawsuit is to prevent Hyundai and Kia from certifying that vehicles produced in their Alabama and Georgia supply chains meet "high-road employment standards" until they undergo independent audits of those supply chains.

The lawsuit, which alleges that Hyundai and Kia used low-wage labor in their supply chains and concealed this fact to secure numerous contracts with California public agencies, names as defendants Hyundai Motor Company, Hyundai Motor America (U.S. subsidiary), Kia, Kia America (U.S. subsidiary), the parts supplier Hyundai Mobis, and the logistics company Glovis America.

Some foreign media have interpreted the timing of this lawsuit as coinciding with the return of Korean workers who had been detained and deported by U.S. Immigration and Customs Enforcement (ICE) agents at the battery plant in Georgia, which is being jointly constructed by Hyundai and LG Energy Solution.

A representative for JMA stated that Hyundai and Kia "were involved in serious labor exploitation, including coercive (prison) inmate labor, child labor, and immigrant labor," and described the working conditions as "environments that could lead to severe safety issues or even fatalities."

The representative further explained that Hyundai and Kia used prison labor from Alabama and Georgia, stating, "This is highly likely to violate the constitutional prohibition on cruel and unusual punishment (Eighth Amendment to the U.S. Constitution)." He also noted, "Some employees in the supply chain were children as young as 13," and added, "Hyundai and Kia maintained close control over their subcontractors, giving them the power to influence these hiring practices."

On November 25, Hyundai and Kia categorically denied the allegations. Kia America stated, "We deny all the allegations in the complaint," and added, "Kia is committed to working only with partners who comply with federal, state, and local labor laws." Hyundai also stated, "The allegations are entirely without merit," and explained, "We prioritize the safety and well-being of our workforce above all else and are in full compliance with all federal and state regulations." Hyundai further asserted, "We require our suppliers and business partners to adhere to Hyundai's strict safety, employment, and legal standards, and we take decisive action in the event of any violations."

Kim Jisoo, Legal Times Reporter

※This article is based on content supplied by Law Times.

This content was produced with the assistance of AI translation services.