Hyundai to Part Ways With Ala. Supplier That Employed Kids
Tells shareholders its suppliers in state now in compliance with child-labor laws.
Hyundai says it audited 29 of its direct suppliers in Alabama and is confident it's now in full compliance with labor laws there.
IMAGE: Hyundai
Hyundai said it will shed its controlling stake in an Alabama auto parts plant that was fined last year over child-labor accusations after children as young as 13 were found working for the Korean-operated supplier, Reuters said.
The South Korean automaker shared its decision in the matter with shareholders Friday in a letter. Reuters reported that the letter indicated Hyundai audited 29 of its direct suppliers in Alabama that it said gave it confidence it’s “now in full compliance with underage labor laws.”
A U.S. district court ordered SL Alabama LLC last fall to stop violating the Fair Labor Standards Act’s child-labor provisions after the federal and state labor departments investigated the supplier, finding “oppressive child labor by employing minors under 16 in a manufacturing operation.”
Reuters said Hyundai’s audits of its Alabama suppliers were done by an outside law firm.
In its letter to shareholders, Hyundai said it’s implementing extensive measures that include training of parts suppliers starting in March in collaboration with the federal labor department in an effort to prevent child-labor violations.
Reuters said that one of the plants where children worked is a direct Hyundai subsidiary of which Hyundai said it’s in the process of divesting an ownership stake.
LEARN MORE: Parts Supplier Fined Over Child Labor
Originally posted on Auto Dealer Today
More Industry
Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
New-Vehicle Sales Picture Relative
A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.
Read More →
Auto Group Acquires Third Nissan Rooftop
Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Building an Extraordinary F&I Agency
Work to determine your specialized talent, because that fact will determine everything about your agency’s future.
Read More →
Recipe for Compliance
The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.
Read More →
EVs Getting More Attractive
A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.
Read More →
EV Sales Drop in April Following Surge
North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.
Read More →