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KTK Australia denies forced labour allegations

Allegations that slave labour was used in the production of components used in a number of Australian rollingstock fleets have been strongly denied by KTK Australia.

In a statement, KTK Australia said that such allegations “are based on no official documents, interviews or testimony”.

The allegations stem from a US Department of Commerce blacklist that included KTK Australia’s parent company, KTK Group. The US Department of Commerce said that KTK Group was implicated in human rights violations such as the forced labour of Muslim minority groups from Xinjiang Uyghur Autonomous Region.

KTK Australia disputed the basis for these implications.

“KTK Group has never employed workers who are members of the Uyghur ethnic minority,” said the KTK Australia statement.

KTK Australia’s website lists its components as in use on a number of Australian rollingstock fleets. These include NSW’s New Intercity Fleet (NIF), and Sydney Metro, the X’Trapolis and High Capacity Metro Trains (HCMT) in Victoria, and Queensland’s Next Generation Rollingstock (NGR).

Bombardier, which manufactures the NGR fleet, said that it was closely looking into the allegations.

“Bombardier Transportation is aware of the recent action by the United States Commerce Department in relation to KTK Group Co. We are actively monitoring this new dynamic – impacting the transportation industry – and any effect this could have on our own supply chain, projects and products,” said a Bombardier Transportation spokesman.

In Bombardier’s Supplier Code of Conduct, which all suppliers must agree to, forced labour, modern slavery, and human trafficking are explicitly prohibited. The code outlines:

Bombardier will not engage in the use of forced or enslaved labour or human trafficking, nor will it tolerate their use at any level in its supply chains. Suppliers must not demand any work or service from any person under the menace of any penalty. For example, Suppliers’ employees must be free to leave work or terminate their employment with reasonable notice, and they are not required to surrender any government issued identification, passports or work permits as a condition of employment.

Alstom, which manufactures the Sydney Metro and X’Trapolis fleet, also prohibits forced labour in its supply chain. Its Ethics and Sustainable Development Charter requires that suppliers commit to the “elimination of all forms of illegal, forced or compulsory labour”.

A Victorian Department of Transport spokesperson said that it was assured that there is no evidence of forced labour in the supply chains of its rollingstock.

“We have asked our manufacturers to take additional steps to ensure the integrity of their supply chains, and we continue to monitor the situation and will consider further steps based on the outcomes of ongoing supply chain investigations.”

A Transport for NSW spokesperson highlighted that suppliers must comply with Australian laws covering subcontracting and reporting requirements.

“Transport for NSW also has rights to access and audit the supplier’s records and the materials, goods, workmanship or work methodology employed at any place where the supplier’s activities are being carried out.”

The NSW spokesperson said that the components in use on the NIF were from the French arm of KTK.

In a report published by the Australian Strategic Policy Institute (ASPI), which is in part funded by the US State Department, KTK Group is named as one company that was involved in the transfer of Uyghurs out of Xinjiang. The report cites online news articles.

KTK Australia noted that the cited articles refer to non-Uyghur workers from Xinjiang constructing a playground in a city in Jiangsu province.

“KTK Group confirms that in 2018-19 it did employ a small number of workers from Xinjiang, who were not ethnically Uyghurs, all were properly employed and paid the same wage as all KTK other workers in the same positions,” the KTK Australia statement read.

The US Department of Commerce blacklist prohibits US companies from working with listed companies. KTK Group has no investments in the US and said the decision would not have a material impact on the business.

“KTK Group is a transparent company and we welcome any international customers to inspect our facilities and to audit our labour practices.”

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