The United States Department of Labor filed a complaint on Thursday against South Korean automaker Hyundai Motor Co., an auto parts company, and a labour recruiter for the illegal use of child labour at an Alabama facility.<o:p></o:p>

The complaint, filed in U.S. District Court in Montgomery, Alabama, also seeks an order forcing the firms to return any profits generated using child labour.<o:p></o:p>

In 2022, Reuters reported that a Hyundai subsidiary and other parts suppliers in the Southern state employed youngsters as young as 12. The three defendants named in the current Labor Department petition for hiring a 13-year-old child are Hyundai Motor Manufacturing Alabama LLC, SMART Alabama LLC, an auto parts company, and Best Practice Service LLC, a recruiting firm.<o:p></o:p>

The Department's Wage and Hour Division discovered that the kid had worked up to 60 hours per week on a SMART assembly line, where he operated equipment that shaped sheet metal into automobile parts. The SMART facility supplies parts to Hyundai Motor Manufacturing Alabama, which manufactures popular models such as the Hyundai Santa Fe, Tucson, and Santa Cruz.<o:p></o:p>

According to the complaint filed with the Labour Department, SMART informed the employment firm that "two additional employees were not welcome back at the facility due to their appearance and other physical characteristics, which suggested they were also underage."<o:p></o:p>

"Companies cannot avoid liability by blaming suppliers or staffing companies for child labour violations when they are also employers," stated Solicitor of Labour Seema Nanda in a news statement.<o:p></o:p>

The case highlights continued worries about child labour practices in big firms' supply networks, particularly in locations with considerable industrial activity.<o:p></o:p>

Hyundai Motor Co. and the connected defendants have yet to release a statement regarding the complaint. The case emphasises the need for strict adherence to labour rules, as well as global firms' ethical duties to maintain safe and lawful working conditions throughout their supply chains.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

The United States Department of Labor filed a complaint on Thursday against South Korean automaker Hyundai Motor Co., an auto parts company, and a labour recruiter for the illegal use of child labour at an Alabama facility.

The United States Department of Labor filed a complaint on Thursday against South Korean automaker Hyundai Motor Co., an auto parts company, and a labour recruiter for the illegal use of child labour at an Alabama facility. The complaint, filed in U.S. District Court in Montgomery, Alabama, also seeks an order forcing the firms to return any profits generated using child labour. In 2022, Reuters reported that a Hyundai subsidiary and other parts suppliers in the Southern state employed youngsters as young as 12. The three defendants named in the current Labor Department petition for hiring a 13-year-old child are Hyundai Motor Manufacturing Alabama LLC, SMART Alabama LLC, an auto parts company, and Best Practice Service LLC, a recruiting firm. The Department's Wage and Hour Division discovered that the kid had worked up to 60 hours per week on a SMART assembly line, where he operated equipment that shaped sheet metal into automobile parts. The SMART facility supplies parts to Hyundai Motor Manufacturing Alabama, which manufactures popular models such as the Hyundai Santa Fe, Tucson, and Santa Cruz. According to the complaint filed with the Labour Department, SMART informed the employment firm that "two additional employees were not welcome back at the facility due to their appearance and other physical characteristics, which suggested they were also underage." "Companies cannot avoid liability by blaming suppliers or staffing companies for child labour violations when they are also employers," stated Solicitor of Labour Seema Nanda in a news statement. The case highlights continued worries about child labour practices in big firms' supply networks, particularly in locations with considerable industrial activity. Hyundai Motor Co. and the connected defendants have yet to release a statement regarding the complaint. The case emphasises the need for strict adherence to labour rules, as well as global firms' ethical duties to maintain safe and lawful working conditions throughout their supply chains. (With inputs from Reuters)

US Department of Labour sues Hyundai over child labour in Alabama

Hyundai Motor Co, Korea's top automaker, is investigating child labor violations in its U.S. supply chain and plans to "sever ties" with Hyundai suppliers in Alabama found to have relied on underage workers, the company's global chief operating officer Jose Munoz told Reuters on Wednesday.

A Reuters investigative report in July documented children, including a 12-year-old, working at a Hyundai-controlled metal stamping plant in rural Luverne, Alabama, called SMART Alabama, LLC.

Following the Reuters report, Alabama's state department of labour, in coordination with federal agencies, began investigating SMART Alabama. Authorities subsequently launched a child labour probe at another of Hyundai's regional supplier plants, Korean-operated SL Alabama, finding children as young as age 13.

In an interview before a Reuters event in Detroit on Wednesday, Munoz said Hyundai intends to "sever relations" with the two Alabama supplier plants under scrutiny for deploying underage labour "as soon as possible."

In addition, Munoz told Reuters he had ordered a broader investigation into Hyundai's entire network of US&nbsp;auto parts suppliers for potential labour law violations and "to ensure compliance."

Munoz's comments represent the Korean automotive giant's most substantive public acknowledgment to date that child labour violations may have occurred in its US&nbsp;supply chain, a network of dozens of mostly Korean-owned auto-parts plants that supply Hyundai's massive vehicle assembly plant in Montgomery, Alabama.

Hyundai's $1.8 billion flagship US&nbsp;assembly plant in Montgomery produced nearly half of the 738,000 vehicles the automaker sold in the United States last year, according to company figures.

The executive also pledged that Hyundai would push to stop relying on third party labour suppliers at its southern US&nbsp;operations.

As Reuters reported, migrant children from Guatemala found working at SMART Alabama, LLC and SL Alabama had been hired by recruiting or staffing firms in the region. In a statement to Reuters this week, Hyundai said it had already stopped relying on at least one labour recruiting firm that had been hiring for SMART.

Munoz told Reuters: "Hyundai is pushing to stop using third party labour suppliers, and oversee hiring directly."

Munoz did not offer further detail into how long Hyundai's probe of its US&nbsp;supply chain would take, when Hyundai or any partner plants could end their dependence on third party staffing firms for labour, or when Hyundai could end commercial relationships with two existing Alabama suppliers investigated for child labour violations by US&nbsp;authorities.

In a statement on Wednesday, SL Alabama said it had taken "aggressive steps to remedy the situation" as soon it learned a subcontractor had provided underage workers. It terminated its relationship with the staffing firm, took more direct control of the hiring process and hired a law firm to conduct an audit of its employment practices, it said.

SMART Alabama did not immediately respond to a request for comment.

Munoz's comments come on the same day that an investor group working with union pension funds sent a letter to Hyundai, pushing it to respond to reports of child labour at US&nbsp;parts suppliers, and warning of potential reputational damage to the Korean automaker.

The letter said that the use of child labour violated international standards Hyundai committed to in its Human Rights Charter and its own code of conduct for suppliers.

&nbsp;

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Hyundai Motor Co, Korea's top automaker, is investigating child labor violations in its U.S. supply chain and plans to "sever ties" with Hyundai suppliers in Alabama found to have relied on underage workers, the company's global chief operating officer Jose Munoz told Reuters on Wednesday.

Hyundai Motor Co, Korea's top automaker, is investigating child labor violations in its U.S. supply chain and plans to "sever ties" with Hyundai suppliers in Alabama found to have relied on underage workers, the company's global chief operating officer Jose Munoz told Reuters on Wednesday. A Reuters investigative report in July documented children, including a 12-year-old, working at a Hyundai-controlled metal stamping plant in rural Luverne, Alabama, called SMART Alabama, LLC. Following the Reuters report, Alabama's state department of labour, in coordination with federal agencies, began investigating SMART Alabama. Authorities subsequently launched a child labour probe at another of Hyundai's regional supplier plants, Korean-operated SL Alabama, finding children as young as age 13. In an interview before a Reuters event in Detroit on Wednesday, Munoz said Hyundai intends to "sever relations" with the two Alabama supplier plants under scrutiny for deploying underage labour "as soon as possible." In addition, Munoz told Reuters he had ordered a broader investigation into Hyundai's entire network of US auto parts suppliers for potential labour law violations and "to ensure compliance." Munoz's comments represent the Korean automotive giant's most substantive public acknowledgment to date that child labour violations may have occurred in its US supply chain, a network of dozens of mostly Korean-owned auto-parts plants that supply Hyundai's massive vehicle assembly plant in Montgomery, Alabama. Hyundai's $1.8 billion flagship US assembly plant in Montgomery produced nearly half of the 738,000 vehicles the automaker sold in the United States last year, according to company figures. The executive also pledged that Hyundai would push to stop relying on third party labour suppliers at its southern US operations. As Reuters reported, migrant children from Guatemala found working at SMART Alabama, LLC and SL Alabama had been hired by recruiting or staffing firms in the region. In a statement to Reuters this week, Hyundai said it had already stopped relying on at least one labour recruiting firm that had been hiring for SMART. Munoz told Reuters: "Hyundai is pushing to stop using third party labour suppliers, and oversee hiring directly." Munoz did not offer further detail into how long Hyundai's probe of its US supply chain would take, when Hyundai or any partner plants could end their dependence on third party staffing firms for labour, or when Hyundai could end commercial relationships with two existing Alabama suppliers investigated for child labour violations by US authorities. In a statement on Wednesday, SL Alabama said it had taken "aggressive steps to remedy the situation" as soon it learned a subcontractor had provided underage workers. It terminated its relationship with the staffing firm, took more direct control of the hiring process and hired a law firm to conduct an audit of its employment practices, it said. SMART Alabama did not immediately respond to a request for comment. Munoz's comments come on the same day that an investor group working with union pension funds sent a letter to Hyundai, pushing it to respond to reports of child labour at US parts suppliers, and warning of potential reputational damage to the Korean automaker. The letter said that the use of child labour violated international standards Hyundai committed to in its Human Rights Charter and its own code of conduct for suppliers.

Korean auto giant Hyundai investigating child labour violations in its US supply chain

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US Department of Labour sues Hyundai over child labour in Alabama

Korean auto giant Hyundai investigating child labour violations in its US supply chain