USA: The Chinese manufacturer has announced that, from 16 March, it will place 161 out of 406 employees at its Springfield facility on two months’ unpaid leave. This will affect, among others, 57 sheet metal workers and 76 electrical fitters.
This measure stems from delays in shipments of bodies and other components imported from China. US Customs and Border Protection seized them last May, citing CRRC’s violation of the Uyghur Forced Labour Prevention Act. The company then stated that it had enough components to keep the plant running steadily until year-end.
CRRC reports that it is working to release the components, resume operations, and reinstate the furloughed staff. For instance, on 7 January, it submitted over 2,000 digital files to Customs and Border Protection proving the allegations unfounded. It is also worth noting that high tariffs on imports from China to the US remain in place due to President Trump’s new customs policy. For example, steel and aluminium products face a 50% duty.
The CRRC Springfield plant is currently fulfilling contracts for 404 metro cars for Boston and 64 metro cars for Los Angeles. Both orders face years-long delays. Last spring, to speed up Boston deliveries, an addendum was signed with CRRC that included various compensations for increased costs.
