Hyundai caught using child labor at US parts factory

Investigation by global news agency Reuters have found examples of children as young as 12 working for a Hyundai-owned parts supplier in the US.


Authorities have been warned for several instances of child labor being used at a North American subsidiary of auto parts supplier Hyundai.

Special investigation by news agency Reuters found examples of 12-year-old children working at Hyundai’s parts manufacturing facility, who had previously registered offenses for “crush danger and amputation.”



Reuters learned about underage workers at a Hyundai-owned supplier following the brief disappearance of a Guatemalan migrant child in February from his family home in Alabama,” the news agency reported in its exclusive story written by journalists Joshua Schneyer, Mica Rosenberg and Kristina Cooke.

“The girl, who turned 14 this month, and her two brothers, aged 12 and 15, all worked in factories earlier this year and did not attend school, according to people familiar with their jobs.” Reuters reported, noting their father confirmed their account in an interview.

Local police helped find the missing girl after a public warning.



“A former SMART worker, an adult migrant who left for other jobs in the auto industry last year, said there were about 50 underage workers between different factory shifts, adding that he knew some of them personally.” Reuters news agency reported.

“Another former working adult at SMART, a US citizen who also left the factory last year, said he worked with about a dozen minors on his shifts.”

However, Reuters said it “unable to determine the exact number of children who may have worked in SMART factories, what minors were paid, or their other job requirements.”



Hyundai USA did not answer detailed questions from Reuters but instead provided the following statement, noting the automaker “does not tolerate illegal employment practices in any Hyundai entity.”

“We have policies and procedures that require compliance with all local, state and federal laws,” the Hyundai statement continued.

Although Hyundai has tried to distance itself from the scandal, Reuters reports SMART is listed by Hyundai in the company’s filing as the majority owner of the parts division.



SMART, in a separate statement, said it follows federal, state and local laws and “rejects allegations that it knowingly employs anyone who is not qualified for the job.” Reuters reported.

In an attempt to blame temporary employment agencies, SMART said they expect “these agencies to follow the law in recruiting, hiring and placing workers in their place.”

As is the case with Hyundai, SMART does not answer specific questions from the investigative team at Reuters.



A spokesman at the Alabama attorney general’s office declined to comment when approached by Reuters.

However, after the story was published, a spokesman for the Alabama Department of Labor said it would work with federal authorities to investigate the case.

“Disclosure of child labor in Hyundai’s US supply chain could spark consumer, regulatory and reputational backlash for one of the world’s most powerful and profitable automakers.” Reuters reported.

“In its human rights policy posted online, Hyundai said it banned child labor in its entire workforce, including suppliers,” the news agency said.

Joshua Dowling has been an automotive journalist for more than 20 years, spending most of his time working for The Sydney Morning Herald (as an automotive editor and an early member of the Drive team) and News Corp Australia. He joined CarAdvice/Drive in 2018, and has been a World Car of the Year judge for over 10 years.

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