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EXCLUSIVE Korean auto giant Hyundai investigating child labor in its U.S. supply chain, suspends two US suppliers

https://www.reuters.com/business/autos-transportation/exclusive-korean-auto-giant-hyundai-investigating-child-labor-its-us-supply-2022-10-19

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EXCLUSIVE Korean auto giant Hyundai investigating child labor in its U.S. supply chain | Reuters

A Reuters investigative report in July documented children, including a 12-year-old, working at a Hyundai-controlled metal stamping plant in rural Luverne, Alabama, called SMART Alabama, LLC. In an interview before a Reuters event in Detroit on Wednesday, Munoz said Hyundai intends to «sever relations» with the two Alabama supplier plants under scrutiny for deploying underage labor «as soon as possible». auto parts suppliers for potential labor law violations and «to ensure compliance». assembly plant in Montgomery produced nearly half of the 738,000 vehicles the automaker sold in the United States last year, according to company figures.

The executive also pledged that Hyundai would push to stop relying on third party labor suppliers at its southern U.S. As Reuters reported, migrant children from Guatemala found working at SMART Alabama, LLC and SL Alabama had been hired by recruiting or staffing firms in the region. In a statement to Reuters this week, Hyundai said it had already stopped relying on at least one labor recruiting firm that had been hiring for SMART. supply chain would take, when Hyundai or any partner plants could end their dependence on third party staffing firms for labor, or when Hyundai could end commercial relationships with two existing Alabama suppliers investigated for child labor violations by U.S.

In a statement on Wednesday, SL Alabama said it had taken «aggressive steps to remedy the situation» as soon it learned a subcontractor had provided underage workers. It terminated its relationship with the staffing firm, took more direct control of the hiring process and hired a law firm to conduct an audit of its employment practices, it said. SMART Alabama did not immediately respond to a request for comment. parts suppliers, and warning of potential reputational damage to the Korean automaker.

The letter said that the use of child labor violated international standards Hyundai committed to in its Human Rights Charter and its own code of conduct for suppliers.

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