USA: On 16 May, the Chinese manufacturer placed 142 out of 430 employees at its American facility on a two-month unpaid leave.
CRRC announced the measure in January, explaining it by the detention of body shells and components. US Customs and Border Protection seized the parts last May, accusing CRRC of the violation of the Uyghur Forced Labour Prevention Act.
However, US Customs and Border Protection released the components two days after the worker furloughs started. CRRC stated that it submitted all the necessary documentation proving its compliance with the labour requirements. Soon, the manufacturer will receive the detained body shells and components as well as gradually recall the affected employees from furlough.
Currently, CRRC’s facility in Springfield is implementing contracts for 404 metro cars for Boston and 64 metro cars for Los Angeles. Both orders have been facing delays for several years. Last spring, CRRC signed an addendum containing various compensations for increased costs to speed up Boston deliveries.
