The U.S. Department of Labor charged a Korean-owned auto parts company and a Hyundai Motor Co. supplier with child labour violations at an Alabama factory.
The DOL said that SL Alabama LLC, a branch of SL Corp in South Korea, hired minors to work at its business in Alexander City, Alabama.
The DOL stated SL Alabama “repeatedly violated” labour standards by using “oppressive child labour” and “minors under 16” since November.
SL Alabama admits children worked at the company, which builds headlights, rear lights, and other components for Hyundai and Kia. SL stated an unnamed labour recruitment business hired the kids.
One month ago, Reuters revealed child labour at another Hyundai subsidiary’s Alabama auto parts plant. The Alabama Labor Department said it would investigate labour abuses at the company alongside federal officials.
Child labour at a second Hyundai supplier implies increased scrutiny of the automaker’s U.S. supply chain. Hyundai said late Monday it “does not accept illegal employment practices.”
“We have standards and processes that require local, state, and federal compliance,” it said.
A proposed settlement agreement was submitted along with the case against SL Alabama. SL Alabama committed to stopping hiring minors, disciplining management who used underage workers, and severing ties with recruiters that supplied child labour.
An SL Alabama attorney and a Department of Labor lawyer signed the proposed agreement on Aug. 18. Not yet judge-signed.
The filings didn’t say how many kids worked at SL Alabama or what they did. It’s unclear if the corporation or its labour contractors face sanctions.
The DOL made no comment.
SL Alabama told Reuters, “We fully cooperated with the Department of Labor investigation, and we’re augmenting our verification system so kids won’t work going forward.”
Federal and Alabama laws prohibit juveniles under 16 from working in most industrial factories because they are unsafe.
SL Alabama’s website says it employs 650 employees. SL Corp runs a Tennessee manufacturing facility and a Michigan research facility.
Reuters says that kids, who are often immigrants, are hired by Alabama factories through employment agencies.
Labor organisations have attacked staffing agencies for allowing corporations to outsource employee verification and work eligibility.
