SK Battery installs immigration controls amid a complaint about hiring practices at a Korean-owned factory

August 28, 2020 Trevor Williams

SK Innovation is taking new steps to make immigration compliance a component of its $2.6 billion allocation in Jackson County, as evidence is being developed that foreign personnel are moving Americans into the structure process.

The Korean electric vehicle battery manufacturer instituted document controls Thursday, a week after Republican Doug Collins, a Republican whose district includes the plant, first asked immigration and customs officials for an investigation into hiring practices in the country.

In a letter on August 19, the member of Congress raised considerations about “imported” Korean personnel to build the plant, especially as losses from tasks in the state accumulate as a result of COVID-19.

On Thursday, he expressed a momentary setback against the company in another letter to ICE and U.S. Customs Border Protection officials in Washington: he wrote that more than 30 single-family homes were rented to Korean workers, violating local occupancy rules.

Even more troubling, local officials and the electorate had informed Collins, after investigating alleged code violations, that some 200 workers, all Koreans, were trained in welding techniques at a former bird farm five miles from the SK plant.

“This data also highlights rumors that I’ve been hearing for weeks that U.S. housing inspectors discovered that the paints being made in the workplace were insufficient, with welding in mechanical systems failing.Experts said it is transparent that welding procedures were not followed,” Collins wrote.

He suggested that the U.S. government suspend visas for SK’s own employees, who have been still involved, until the practices of its subcontractors are harmonized.

In either letters, the Congressman referred to two incidents in May at Atlanta’s Hartsfield-Jackson International Airport in which customs officials blocked a overall of 33 Korean staff on arrival to the much-leased battery plant and then cancelled the electronic formula authorization for authorization for 25 people.More.

In a press release, CBP accused staff of carrying letters of fraudulent tasks and of being part of a “criminal network” intended to “steal” their duties from Americans.Without flights back to Seoul, they were sent to a detention center in Lovejoy before being returned to Korea; the first 12 Koreans were arrested there for several days.

SK Innovation argued that hiring staff on site is the duty of contractors and reiterated a desire to comply with local law after the May incident.SK also noted that more than 1,000 Americans have worked on the site so far.

That said, the company set up its own checkpoint on Thursday to show how seriously the problems raised on the site are taken, and anyone with transparent authorization for paints in the United States will be banned from entering.

“If an entrepreneur violates this policy, SK Battery America will impose serious penalties, adding the contractor’s imaginable termination.In addition, SKBA will conduct uninterrupted inspections to ensure that our subcontractors comply with applicable laws,” the corporate said.in a provided to Global Atlanta.

The resolution comes after reports described complaints from local citizens and union leaders denouncing the Korean presence on the site at a time when many investors were still unemployed or underemployed.A team of five Fox cameras tracked down some of the Korean employees in rented homes in the area, implying that their presence shows that they were disobeying immigration laws.

A review of some subcontractors shown in the Fox Five video, such as KapJin and Younchang, which are Korea-based corporations that supply clean room, power generation and CVC systems to SK Innovation worldwide.

This coincides with the company in the Korea Times newspaper that uses staff who have reveled in high-tech battery factories, such as SK’s new facility in Hungary.The structure schedule is tight and SK has made agreements with Volkswagen and Ford to supply batteries to the United States.

At least some of the subcontractors’ staff can benefit from exceptions to regulations that prevent foreign personnel from running on U.S. projects.

The access procedure under the visa waiver program is at stake, which allows citizens of 38 countries, Europe’s best basic friend, to travel to the United States for advertising or tourist purposes for up to 90 days without obtaining a visa.a key friend and business partner, is one of asia’s few member countries.

For business travelers under the program, goals such as prospective meetings, supervision of workers and convention attendance are permitted, while maximum professionals or non-professionals are strictly prohibited.

There are some exceptions: in addition to professionals in narrow fields running on limited assignments, the visa waiver program allows foreign advertising personnel involved in the installation, repair and maintenance of purchased devices (provided that the contract selling such devices includes those facilities in the sale The program will also allow them to come and exercise Americans to use or hold such machines.

It is known whether stranded Korean personnel were qualified this way.SK refused to advertise to its contractors or comment further.Border customs coverage refused to disclose express corporations that provided the fraudulent letters or whose staff did not have access.

Teri Simmons, director of immigration and foreign affairs at law firm Arnall Golden Gregory LLP, said Atlanta customs and border coverage officials are accustomed to evaluating exception applications.

Many production facilities in the southeastern United States purchase specialized machinery from foreign suppliers, such as CNC machines, conveyor systems, robot systems, and other automation systems. Knowing this, officials have most likely discovered a genuine concern, he said.

“Atlanta CBP is sometimes independent and publicity with its police,” Simmons told Global Atlanta.”Technicians travel to install the appliance and are legally admitted under the visa waiver program every day.”

CBP said Koreans destined for the commercial plant in Georgia revealed that they had to pay between $6,000 and $7,000 for two or 3 months of work, leading to fears that they would cut wages in the United States.

This would not be the first time such a schema has been exposed. German automakers faced a similar complaint when their subcontractors recruited personnel under the Electronic Travel Authorization System (ESTA) and B1 guest visas to build factories in Alabama and South Carolina.Volvo were charged with the same flaw, which was widely documented through CBS News in a special report.

Simmons said the recent Korean incident underscored the desire for foreign investors to familiarize themselves with the strict US regulations.

“I would propose that all incoming corporations perceive and examine needs to avoid this kind of challenge in the future,” Simmons said.

He noted that staff seeking exceptions to the painting restrictions of the visa waiver program deserve to be able to provide the appropriate documents, adding a transparent procurement contract abroad. Workers should also be able to perform their duties as supervisors or installers.

The need for surveillance on immigration is acute now: from Europe’s highest it was banned at the start of the pandemic, which closed consulates and embassies where businessmen would normally ask for “exceptions in national interest,” Simmons said.

In addition to this, President Trump issued a proclamation in June that bans non-immigrant visas like the L-1 for in-company transfers and the J-1 visa for interns until the end of this year.

Deputy Consul General Kwangsuk Lee at the Korean Consulate in Atlanta said his boss, Consul General Young-jun Kim, actively suggested to Korean corporations over a desire to prioritize compliance.

“This will give us a more sustainable perspective for any company that is considering making an investment here,” Lee said.

At SK Battery, the latest wave of a wave of Korean investment development that entered the state since Kia Motors moved here in 2007, the challenge has become more delicate given a high incentive package worth $300.3 million.

But John Scott, director of economic progress at the Jackson County Chamber of Commerce, said that calling it a gift for foreigners at the expense of Americans does justice to the way the procedure works.

On the one hand, incentives apply only to the first phase of the plant – the initial commitment of $1.67 billion and 2,000 jobs – and not at the time of allocation of $940 million that will create 600 more jobs.

And the structure phase does not come into play; about $53 million in government tax credits will only be provided when the first 2,000 permanent jobs in the United States are created over the next five years and part.In addition to public subsidies for field preparation work, many of the other tax credits will be Had all Georgian corporations based on spending in spaces such as studies and development.

Maximum life-threatening detail similar to the terrain: adding a $28.2 million interest acquisition, plus a $102 million tax exemption over two decades that will eventually make the land very loose for the company.

However, Jackson County has the name of the land and all appliances installed for 20 years, and Mr. Scott says that even considering SK’s big savings, about $160 million will be generated for local schools from a site that has hardly generated tax benefit over the more than two decades.

“Note that the $300 million maximum would not exist if SK were located in some other state,” Scott said.

If the company leaves or closes prematurely, you will have to pay the full land charge.

Mr. Scott said he had not heard anything about the welding operation discussed through Mr. Collins in the letter; Jackson’s room in constant communication with SK, who insisted that none of his workers entered inappropriately.

From Scott’s point of view, the challenge is like a remote incident.He noted that the SK plant has already been a boon for the region, with increasingly visual benefits in local neighborhoods and restaurants.

“They have already spent millions of dollars with local contractors in Jackson County, Georgia and the United States,” he told Global Atlanta.”They spend a lot on American citizens, regardless of their ancestry.”

He said there were many reasons why the company would hire Korean workers, given the highly technical nature of the appliance in the still delicate lithium-ion battery sector.

“Sometimes industry secrets are something like machine setup,” Scott said.

SK’s innovation itself has been accused through its rival LG Chem of violating a patent agreement, according to an initial ruling by the International Trade Commission in February.A Seoul court ruled Friday in favor of LG Chem in a civil action brought through SK Innovation challenging LG Chem Action in the United States.The ITC is expected to make a final resolution in October.SK says the structure is as scheduled.

It is unclear what effect legal disorders and imaginable RESEARCH by ICE would have on long-term Korean investments, which the Georgia Department of Economic Development is intensively recruiting.

The subsidiary told a spokesperson that it expects all investors to comply with applicable labor regulations and legislation “without exception,” but that beyond demanding situations they have been overcome:

“Other rumours and similar innuendos occurred ten years ago in the structure of the Kia plant.Last year, however, the company celebrated more than a decade of structuring some of the world’s best-rated cars and creating tens of thousands of jobs in western Georgia, either in factories and suppliers.»

For its component, SK Battery has already donated more than $500,000 to educational systems and coronavirus reaction projects in Georgia, and may only do for the northern component of the state what Kia has done for its western region.

Enchem, an electrolyte recycler, has already announced that it will build a $63 million plant near the SK plant.Scott said there are more and more SK providers in the Jackson County area, as well as independent Korean customers who have now heard of Georgia.

Gov. Brian Kemp traveled to Korea to meet with SK and corporations last summer, and the state transferred resources from his paintings to China to take advantage of what state officials described as an opportune time to recruit Korean corporations.

Korean bedmaker Zinus said on August 18 that it would establish a $108 million plant and distribution in McDonough, hiring 804 employees.

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