Kia, Hyundai officials deny labor abuse allegations in lawsuit

Hyundai and Kia executives Monday denied allegations in a lawsuit filed last week by a nonprofit organization claiming the Orange County-based carmakers violated state law against unfair competition with the use of exploited labor from children, immigrants and inmates.

Jobs to Move America filed the lawsuit in Los Angeles County Superior Court accusing Fountain Valley-based Hyundai and Irvine-based Kia of using cheap labor in supply chains, then masking it to get contracts from public agencies in California. Sen. Maria Elena Durazo, D-Los Angeles, and Los Angeles City Councilmember Hugo Soto-Martinez warned at a news conference with the
plaintiffs that the companies’ contracts could face trouble with public agencies if the allegations are proven.

“Kia America denies the allegations in the complaint and is committed to working only with suppliers who comply with federal, state, and local labor laws,” Kia America spokesman James Bell said Monday.

“These allegations are baseless,” Alasdair Coleman of Hyundai said in a statement. “We prioritize the safety and well-being of our workforce above all else and remain fully compliant with all federal and state regulations. We require our suppliers and business partners to adhere to Hyundai’s strict safety, employment, and legal standards, and take decisive action when violations occur.

“For nearly four decades, Hyundai has been a driver of American growth and innovation from its U.S. headquarters in Fountain Valley, California, and we value our long-standing relationship with the state. Hyundai is a major economic contributor to the communities in which we operate and is committed to providing good jobs, with competitive wages and benefits. Hyundai
recently announced that we are creating 25,000 new U.S. jobs — on top of our existing 190,000 jobs — as part of a $26-billion investment commitment. In Alabama, we employ 4,500 people directly and support an additional 18,000 jobs, generating more than $2.4 billion in private disposable income each year. At our new plant in Georgia, we have committed to employing 8,500 workers by 2031 — creating an estimated 40,000 direct and indirect jobs across the state.”

Meredith Stewart of Jobs to Move America said in a news conference last week that the companies have “engaged in severe labor exploitation, including coerced prison labor, child labor and migrant labor with working conditions that led to higher safety issues and death.”

Stewart said the companies were using labor from prisons in Alabama and Georgia, which she argued “likely violates the constitutional prohibition against cruel and unusual punishment.”

Stewart said some of the employees are children “as young as 13.” Stewart said the companies “maintain close control over their suppliers and do have the power to influence their employment practices.”

The lawsuit seeks a court order preventing the companies from receiving certifications that their vehicles “are made with high-road employment standards until they submit to an independent audit of their supply chain in Alabama and Georgia,” Stewart said.