California Lawsuit Seeks to Block Hyundai and Kia Sales Over Labor Allegations
A new lawsuit filed in California is seeking to block the sale of Hyundai and Kia vehicles in the state due to allegations of “unconscionable labor practices” in their supply chains. The lawsuit, filed by the nonprofit group ‘Jobs to Move America’, claims that the automakers have violated California’s Unfair Competition Law by relying on suppliers that engage in “illegal and unethical labor practices,” including the use of prison, migrant, and child labor.
The allegations include the use of migrant children as young as 12 years old to work in at least four of Hyundai’s major suppliers in Alabama. Hyundai has denied the claims, stating that it prioritizes the safety and well-being of its workforce and remains compliant with all federal and state regulations. The company requires its suppliers to adhere to strict safety, employment, and legal standards and takes decisive action when violations occur.
The lawsuit seeks a declaratory judgment confirming that Hyundai and Kia’s actions violate California law, along with a permanent injunction mandating independent audits, third-party monitoring, and ongoing compliance verification. The plaintiffs argue that by asserting compliance with California’s high-road standards, Hyundai and Kia are misleading California public agencies and consumers, and giving themselves an unfair competitive advantage over responsible companies.
Key Allegations:
- Use of prison, migrant, and child labor in Hyundai and Kia’s supply chains
- Violations of California’s Unfair Competition Law
- Misleading California public agencies and consumers about labor practices
Hyundai’s Response:
- Denies allegations, calling them “baseless”
- Prioritizes safety and well-being of workforce and remains compliant with regulations
- Requires suppliers to adhere to strict standards and takes action when violations occur
The lawsuit is a significant development in the ongoing debate over labor practices in the automotive industry. If successful, it could have major implications for Hyundai and Kia’s sales in California and potentially other states.
