Hyundai, the South Korean automaker, announced on Friday that it would sell its stake in an Alabama supplier after an investigation revealed that underage children were employed in the factory. The Reuters investigation discovered that children as young as 12 were working at the factory, resulting in the U.S. Labor Department fining the suppliers $30,000 for the violations.
Hyundai admitted to employing underage workers at two plants, but the Reuters report stated that “dozens” of underage workers were working alongside the factory employees. The company stated that the third-party staffing agencies used by its suppliers, SL Hyundai and SMART, either did not properly vet employees or illegally employed underage workers.
In a letter to shareholders, Hyundai stated that it had launched multiple investigations and a broader review of its U.S. supplier network upon discovering the issues last year. The company also affirmed its commitment to being a responsible corporate citizen in Alabama and everywhere it operates, valuing the strong partnerships and long-term relationships it has developed in the communities where it works and lives.
Hyundai also announced that it would require SL Alabama to appoint an independent auditor to monitor employment going forward and that it would divest its stake in SMART. An internal review found that while there were young-looking workers at some of its suppliers, those workers provided satisfactory evidence that they were 18 years old or older.
The underage workers were reported to be working at Hyundai’s stamping plants in Alabama, which had a history of documented health and safety violations and amputation hazards. Employees at two supplier plants, Hwashin America Corp’s facility in Greenville, Alabama, and Ajin Industrial Co in Cusseta, Alabama, reported working alongside at least 10 children.
Former Occupational Health and Safety Administration Secretary David Michaels criticised Hyundai last year, stating that “Consumers should be outraged…They should know that these cars are being built, at least in part, by workers who are children and need to be in school rather than risking life and limb because their families are desperate for income.”
