Hyundai supplier accused of child labor violations by U.S. authorities

SL

23/08/2022 04:17

By Mica Rosenberg, Joshua Schneyer and Hyunjoo Jin
    NEW YORK, Aug 22 (Reuters) - The U.S. Department of Labor on
Monday accused a Korean-owned auto parts maker and supplier of
Hyundai Motor Co of violating federal child labor laws at an
Alabama factory, federal court filings reviewed by Reuters show.
    The Department of Labor (DOL) said that SL Alabama LLC, a
subsidiary of South Korea's SL Corp  005850.KS , employed
underage workers at its Alexander City, Alabama factory,
according to filings on Monday with the U.S. District Court for
the Middle District of Alabama.  
    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. 
    In a statement to Reuters, SL Alabama admitted 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.  urn:newsml:reuters.com:*:nL1N2Z31MP 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. 
    The proposed agreement was signed Aug 18 by an SL Alabama
attorney and a Department of Labor lawyer. It hasn't yet been
signed by a judge.  
    The filings didn't detail how many minors worked at SL
Alabama or what type of jobs they performed. It isn't clear
whether the company or the labor contractors it works with face
any fines or other penalties. 
    The DOL didn't respond to requests for comment. 
    In its statement to Reuters, SL Alabama said "we fully
cooperated with the investigation by the Department of Labor,
and we are in the process of complementing our verification
system so that minors will not work going forward."      
    Both federal and Alabama law prohibit teens and children
under the age of sixteen from working in most industrial factory
settings because they can be dangerous for minors. 
    SL Alabama employs about 650 people at the Alabama facility,
according to its website. Parent company SL Corp also operates a
factory in Tennessee and research facility in Michigan.
    Previous Reuters reporting has shown how some minors, often
immigrants, get hired for Alabama factory jobs through
recruitment agencies.  urn:newsml:reuters.com:*:nL1N2UD23Q
    Although staffing firms help fill industrial jobs
nationwide, they have been criticized by labor advocates because
they enable employers to outsource responsibility for vetting
employees and their eligibility to work. 

 (Reporting by Mica Rosenberg and Joshua Schneyer in New York
and Hyunjoo Jin in San Francisco; Additional reporting by
Kristina Cooke in San Francisco. Editing by Paulo Prada)
 ((mica.rosenberg@thomsonreuters.com; (646) 223-6735;))