Hyundai cuts ties with supplier using Alabama child labour — via drivingdotca IndustryNews Autonews
One of the plants where children worked, SMART Alabama LLC in rural Luverne, Alabama, is a direct Hyundai subsidiary. According to Hyundai’s financial statements from last year, the automaker controls a 72-per-cent stake in SMART. Chang wrote that Hyundai was “in the process of divesting its ownership interest in SMART” but it would ensure “that the economically important jobs in the Luverne, Alabama community are preserved.
Hyundai’s letter did not say when the transaction would be completed or identify a buyer or the form a divestiture would take. Since the early 2000s, the metal stamping plant has made chassis parts for hundreds of thousands of Hyundai vehicles per year.Article content Following Reuters’ first story on child labor at SMART last July, as many as 10 Hyundai suppliers in Alabama have been under investigation by state or federal authorities for child labor violations, Reuters reported in December. One of the plants was inspected last August and authorities found and removed several children from the factory floor, later issuing penalties to the plant operator and a third-party staffing firm who recruited them.
“The use of underage labor at a supplier or any operation is unacceptable, and we are committed to making sure non-compliance never happens again,” Chang wrote in the letter. “This is a zero-tolerance issue.”
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