Hyundai Terminates Relationships With Alabama Suppliers Found Using Underage Workers

In light of a recent Reuters investigation exposing child labor at its supplier’s factory, Hyundai has announced its decision to sever ties with an Alabama supplier discovered employing children as young as 12. The U.S. Labor Department imposed a $30,000 fine on the suppliers for these egregious violations.

Hyundai’s shareholder letter acknowledged the employment of underage workers at two plants, a stark contrast to the workers’ claims of working alongside numerous underage individuals as per the Reuters report. Hyundai attributed responsibility to suppliers SL Hyundai and SMART, citing inadequate vetting practices by third-party staffing agencies or illicit hiring of minors.

“Following the discoveries at two of Hyundai Motor Manufacturing Alabama’s suppliers last year, we initiated immediate actions, conducted extensive investigations, and undertook a thorough review of our U.S. supplier network,” stated Hyundai’s official communication. The automaker emphasized its commitment to responsible corporate practices in Alabama and all regions of operation, appreciating the enduring partnerships nurtured within local communities.

Hyundai has mandated SL Alabama to engage an independent auditor for future employment oversight and has decided to divest its stake in the SMART supplier. An internal supplier review concluded that while certain workers appeared youthful, they presented credible evidence of being at least 18 years old.

Reports indicate that these workers were predominantly stationed at Hyundai’s stamping plants in Alabama, sites known for past safety infractions and hazards like amputations. Employees at Hwashin America Corp in Greenville, Alabama, and Ajin Industrial Co in Cusseta, Alabama, recounted laboring alongside approximately ten underage individuals in each facility.

Last year, former Occupational Health and Safety Administration Secretary David Michaels strongly criticized Hyundai in statements provided to Reuters.

“Consumers ought to express indignation,” expressed Michaels previously. “Awareness is vital concerning the construction of these vehicles, which involves workers, some of whom are children sacrificing educational opportunities due to familial financial desperation.”

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