FOR IMMEDIATE RELEASE
Contact:
JMA: Aesha Mahmoud
(562) 269 – 9193
amahmoud@jobstomoveamerica.org
LA Metro and JMA Settlement Resolves $730 Million Contract Dispute, Protecting U.S. Workers in the Face of Mounting Olympic Pressures
LA Metro commits to strengthening its practices to promote transparency around job quality and pay at Hyundai Rotem
Los Angeles, CA, DATE – The Los Angeles County Metropolitan Authority and Jobs to Move America reached a legal settlement concerning a $730 million railcar contract awarded in 2024 to Hyundai Rotem, a subsidiary of the Hyundai Motor Company.
The lawsuit was originally filed in September 2024, when LA Metro awarded Hyundai Rotem a contract despite their proposal not complying with the agency’s 2022 Manufacturing Careers Policy – a framework designed to promote good job creation for local workers.
Following a year of advocacy, the settlement brings the contract into alignment with that policy, requiring Hyundai Rotem to improve conditions for workers that will be preparing the railcars needed for the 2028 Olympics.
“On behalf of all Angelenos, JMA congratulates Metro for showing that public dollars invested in LA’s infrastructure ahead of the Olympics can and will benefit Angelenos. This settlement is a major victory for working people across Los Angeles and the country. This settlement ensures that taxpayer funds will support American manufacturing jobs, local workers, and the equitable economic future we deserve,” said Madeline Janis.
“Working families in Los Angeles have been facing the fallout of fire disaster, rising cost of living and rent, along with the brutal militarized assault on our immigrant communities. This is why we thank Metro for ensuring that the public purchases they make improve conditions for our region. That means securing strong commitments to high quality employment and hiring practices from the companies they contract from,” said Aesha Mahmoud, Senior Researcher with Jobs to Move America.
Below is a summary of the major provisions that were agreed upon in the settlement:
- LA Metro agreed to amend their contract with Hyundai Rotem to bring it into full compliance with the agency’s Manufacturing Careers Policy.
- LA Metro will hire a consultant to assess and strengthen all future procurements covered by the Manufacturing Careers Policy compliance across all agency contracts. JMA has submitted suggested criteria for consultant selection.
- LA Metro will update all of its Request for Proposals to clarify that the U.S. Employment Plan and Local Employment Plan submissions are public records, not trade secrets, and are subject to the California Public Records Act. This provision is key to increase transparency and accountability in future contracts.
- Metro has agreed to refer formal complaints regarding potential violations of the California Transparency in Supply Chains Act to the appropriate authorities. Metro added the Act’s requirements to the Hyundai contract after JMA complained that Hyundai Motor Company’s suppliers in Alabama were found to be using child labor. The settlement further strengthens enforcement of the Act’s requirements. LA Metro will pay Jobs to Move America $250,000, which JMA will use to offset legal costs associated with the lawsuit.
As public agencies across North America prepare for the 2026 FIFA World Cup and the 2028 Olympic and Paralympic Games, cities, counties, and states are poised to spend millions on public infrastructure projects and manufactured equipment. Metro’s commitment will provide a roadmap for ensuring that taxpayer funded purchases create good American jobs and real benefits for the residents of the host cities. It will also provide workers and public interest groups with tools to ensure that vendors and contractors are creating family-sustaining jobs for working families across the country, free from labor abuses and under high standards for safety and training.
About Jobs to Move America (jobstomoveamerica.org)
Jobs to Move America is a strategic policy center that works to transform public spending and corporate behavior in manufacturing to benefit workers and communities. JMA uses a comprehensive approach that is rooted in racial and economic justice and community organizing. We seek to advance a fair and prosperous economy with good jobs and healthier communities for all.
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