BusinessCrimeEconomyForeignNews

Child Labor Violations: U.S. Authorities Indict Hyundai Supplier

The U.S. Department of Labor has accused a Korean-owned auto parts maker and supplier of Hyundai Motor of violating federal child labor laws at an Alabama factory.

The Department of Labor (DOL) on Monday said that SL Alabama LLC, a subsidiary of South Korea’s SL Corp, employed underage workers at its Alexander City, Alabama factory.

Quoting filings on Monday with the U.S. District Court for the Middle District of Alabama Reuters report that since last November, SL Alabama “repeatedly violated” labor regulations by “employing oppressive child labor” and “minors under the age of 16,” the DOL said in a six-page complaint.

According to the report, SL Alabama admitted that children had worked at the plant, which makes headlights, rear lights and other components for companies including Hyundai and its Kia affiliate. SL said the minors had been hired by an outside labor recruitment firm, which it didn’t identify.

The revelations come one month after Reuters reported the use of child labor at another Alabama auto parts plant operated by Hyundai subsidiary SMART Alabama LLC.

The Alabama Department of Labor at the time said it would coordinate with federal authorities to probe labor practices at that plant.

The discovery of child workers at a second Hyundai supplier signals widening scrutiny of labor practices in the automaker’s U.S. supply chain.

In an emailed statement late Monday, Hyundai said “it does not tolerate illegal employment practices in any Hyundai entity.”

“We have policies and procedures in place that require compliance with all local, state, and federal laws,” it added.

Along with the complaint against SL Alabama, a proposed settlement agreement between the government and the parts manufacturer was filed with the court.

Under the terms of that agreement, SL Alabama agreed to stop hiring minors, punish any managers aware of the use of underage employees, and suspend any relationship with any recruiters who supply child workers.

Comment here