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Los Angeles County metropolitan authorities have settled lawsuits for violations of state and federal law and metro policies related to a multi-million-dollar contract to renew subway cars ahead of the 2028 Olympics and Paralympics.
The advocacy and research group’s work to move around the United States sued transport last year after Metro awarded a contract to South Korea’s Hyundai Rotem, part of the Hyundai Motor Group, and built at least 182 new railroad cars to replace much of its aging fleet.
The group argued that Metro violated public contract laws and its own manufacturing policy by not disclosing necessary details about workers’ salaries and benefits, and omitted its commitment to hire at least 10% of “adverse workers” labor force for the project.
Metro settled its lawsuit last week for $250,000. This covers legal fees and, according to records, agreed to change the $730 million order terms at Hyundai. This transaction means that transport can proceed with its initial plans.
Metro said the lawsuit “has not been affected by the delivery timeline.” The transit agency expects to receive 42 cars before the game, as laid out in the original proposal. These cars are planned to be used on the D-line, formerly known as the Purple Line. The route is currently under extension projects under Wilshire Boulevard and is expected to be completed by 2027. Another 140 cars are expected to be delivered by May 2030.
Metro policies, including penalties for non-compliance, were adopted in 2022 to ensure that federal and state dollars provide livable wages for blue-collar workers. Metro originally tried to renew its contract with Hyundai when it learned of the violation, but its work to move around the US thought the revision was not satisfactory. The group sued the agency and asked Metro to tamper with the contract completely.
“This procurement was an example of something that didn’t work,” said Madeline Janice, co-director at Jobs for Moving Through America.
Reconciliation acts as a compromise, and according to its work to drive America, it is a victory of transparency. In addition to revising the contract with the requirements, Metro also agreed to hire an external consultant to improve its future sourcing strategy and increase access to public records regarding the contract.
“It’s really important that the nature of public contracts and government business is most ethical and integrity, transparent, transparent and sincere,” Janice said. “We are very confident that Metro will install tools to use our dollars wisely, and to build our transportation systems in a way that will make the most of our money and deliver the best results.”
The next step is to check if Hyundai is compliant with the new contract. Key concerns about jobs to move America through the lack of contract provisions have been linked to the contemporary recent issues regarding US employment standards.
Last year, the Department of Justice sued the car company after realising that the 13-year-old girl worked up to 60 hours a week along the Alabama assembly line. The lawsuit, which was also named auto parts supplier Smart Alabama LLC and staffing services, suspected of violating the Child Labor Act.
Hyundai said it “was taken immediate action,” and its supplier cut ties with staffing companies.
“What? [settlement] Hyundai is to ensure that we are responsible for spending around $1 billion in money in a way that maximizes the creation of good jobs and opportunities for Americans and Angeleno,” Janice said.
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