Hyundai Motor Company is actively examining allegations of child labor within its U.S. supplier network and has signaled intent to sever ties with Alabama-based suppliers linked to such practices. The company disclosed these steps following a report from Reuters that cited remarks from Chief Operating Officer Jose Muñoz.
The investigation centers on documents tied to a 12-year-old worker employed at SMART Alabama, LLC, a Hyundai-controlled metal stamping operation located in rural Luverne, Alabama. The findings have prompted scrutiny of the broader supply chain and how outside firms assist in recruiting labor for these facilities.
Responding to the Reuters coverage, the Alabama Department of Labor, in collaboration with federal authorities, opened an inquiry into SMART Alabama. Authorities then expanded the focus to another Hyundai supplier, SL Alabama, where investigations revealed that workers included children as young as 13. Alabama law sets the minimum working age at 18 for most employment situations, highlighting potential violations within the state framework.
Muñoz also stated that Hyundai has ordered a wider review of its entire U.S. auto parts supplier network to assess possible labor-law breaches across multiple facilities. This admission implies concern that underage labor could be present among the network that feeds Hyundai’s large assembly complex in Montgomery, Alabama.
Regarding recruitment practices, both entities reportedly relied on third-party staffing agencies to source workers. In response, SL Alabama discontinued its relationship with one recruitment firm and engaged a law firm to conduct an audit. SMART Alabama has not issued formal public comments regarding the alleged violations as of this writing.
Earlier in the year, Reuters reported a separate case involving a 13-year-old migrant girl from Guatemala who briefly left her Alabama home. The family subsequently acknowledged that she, along with two brothers aged 12 and 15, had worked at Smart Alabama LLC. Interviews with current and former employees of the facility suggested that as many as 50 underage workers might have been employed across different shifts, underscoring widespread concern about compliance and oversight within the operation.
These developments come amid ongoing scrutiny of labor practices across automotive supply chains and reflect heightened sensitivity to child labor issues in manufacturing environments in the United States. Independent audits, regulatory reviews, and supplier governance programs are likely to shape Hyundai’s actions and the broader response from the auto industry as a whole. (Reuters)