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Hyundai Motor’s global COO says it will “sever ties” with U.S. suppliers that use child labor
According to a Reuters report on the 19th local time, Jose Munoz, global chief operating officer (COO) of South Korea's Hyundai Motor Co., told the media on the same day that the company is investigating its use in the US supply chain. child labor violations and plans to "sever ties" with suppliers found to be using child labor in Alabama.
Reuters said the media had published an investigative report in July that alleged child labor was used at a metal stamping plant operated by Hyundai Motor-controlled SMART Alabama LLC. After the report was published, the Alabama Department of Labor coordinated with law enforcement to launch an investigation into the plant. Later, police also investigated another Hyundai Motor supplier plant in the area and found that child labor was also used at the plant, with the smallest child labor. Aged only 13 years old.
According to Reuters, Munoz was interviewed by Reuters before an event hosted by the media in Detroit on the 19th local time. He said in an interview that Hyundai plans to "sever ties" "as soon as possible" with two Alabama suppliers under investigation for child labor. Munoz also told Reuters that he had ordered a broader investigation of Hyundai's entire network of U.S. auto parts suppliers to see if there was a potential violation "to ensure compliance with regulations."
Muñoz's comments are the most substantial public admission yet of the South Korean auto giant's child labor problem in its U.S. supply chain. According to Reuters, the immigrant children from Guatemala who worked at the two factories involved were hired through the factories’ local recruitment companies. "Hyundai is pushing to stop using third-party labor agencies and directly oversee recruitment," Munoz said in an interview.
Reuters said in July that they learned of SMART's employment of underage workers following the brief disappearance of a Guatemalan immigrant child in February. The girl, who turned 14 this month, and her 15-year-old and 12-year-old brothers all worked at the factory earlier this year, people familiar with the matter said. Their father, Pedro Z, also confirmed the claim in an interview. "Illegal hiring practices by any Hyundai entity will not be tolerated, and we have policies and procedures in place that require compliance with all local, state and federal laws," Hyundai said in a statement after Reuters first published its findings on July 22. . Hyundai did not answer detailed questions from Reuters about the findings at the time.
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