Hyundai divesting from Alabama supplier over child labor

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In a letter, CEO Jaehoon Chang announced Hyundai is divesting its ownership interest in Luverne's SMART Alabama to ensure “economically important jobs in the Luverne, Ala. community are preserved and that all child labor laws are followed in the future.'

Hyundai Chief Executive Jaehoon Chang announced that Hyundai is divesting its ownership interest in SMART Alabama in Luverne. This will ensure that “economically important jobs in the Luverne, Alabama community are preserved and that all child labor laws are followed in the future,” the letter stated.last July that children were employed at SMART Alabama, which has supplied parts for Hyundai’s Montgomery plant since 2003.

The fines came after an investigation found that JK USA provided the underage workers to SL Alabama without required documentation. Hyundai said SL Alabama has agreed to the appointment of a special Hyundai-appointed audit committee “to ensure its continued compliance with labor laws and best practices going forward.”

“Even though there were issues with third-party staffing agencies that provided false documentation to these suppliers, ultimately, the responsibility is with Hyundai to make sure all our suppliers understand and meet our high global workforce standards... Hyundai is a responsible corporate citizen in Alabama and everywhere we conduct business.”

 

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