Hyundai’s US subsidiary accused of using child labor at its factory

Hyundai Motor Company’s subsidiary was said to have used child labor in its plant. The facility is where vehicle parts for the assembly line in Montgomery, Alabama, are being made.

According to Reuters, the underage factory workers are as young as 12, and they have recently worked at a metal stamping factory that is being run by SMART Alabama LLC. Hyundai Motor is said to have listed SMART as its subsidiary that supplies parts to Hyundai’s assembly plant in Alabama, which makes SUVs and popular car models.

When questioned about the allegations, SMART was said to have avoided giving answers to specific questions related to the underage workers, which some people familiar with the factory have described. The company released a statement instead and explained it had followed federal, state, and local laws.

SMART then denied that it knowingly employed people who are not qualified to work in its facilities. It went on to say that it typically relies on employment agencies to fill vacant temporary posts and expects these agencies to abide by the law in their recruitment, hiring, and placement of workers on its sites.

It was reported that Reuters learned about the underage workers at Hyundai’s vehicle parts supply company after a migrant child from Guatemala had briefly disappeared from her home in Alabama. It turned out that the girl who just turned 14 this month, along with her two brothers, who are 12 and 15, have all worked at the plant, and they are not attending school.

Pedro Tzi, their children’s father, confirmed to Reuters via an interview that the stories about his children’s employment are true. The family lives in Enterprise, and since this city does not have the authority to investigate any possible violations of labor law at the factory, the police notified the Alabama state attorney general’s office about the incident.

The revelation of child labor in Hyundai’s supply chain facility in the U.S. could trigger a regulatory and public backlash. But the Korean automaker’s human rights policy states it prohibits child labor in its workplace, and this includes the suppliers.

Meanwhile, Bloomberg reported that Hyundai said it has no evidence of child labor at its supplier’s unit in Alabama. The company declared it is not aware of proof of underage employment at its parts subsidiary’s plant.