Biplab Das 
The U.S. Department of Labor has filed a lawsuit against Hyundai Motor Co, an auto parts plant, and a labour recruiter, accusing them of illegal child labour practices in Alabama. This legal action highlights a troubling issue within the automotive industry and calls for significant changes to protect vulnerable workers.
The lawsuit, filed in U.S. District Court in Montgomery, Alabama, seeks to force the companies to forfeit any profits gained from using child labour. The complaint targets Hyundai Motor Manufacturing Alabama LLC, SMART Alabama LLC, an auto parts manufacturer, and Best Practice Service LLC, a staffing firm. According to the Department of Labor, a 13-year-old child was employed at the SMART plant, working up to 60 hours per week on an assembly line that produced auto body parts.
SMART Alabama LLC supplies parts to Hyundai’s manufacturing plant in Montgomery, where popular models like the Hyundai Santa Fe, Tucson, and Santa Cruz are assembled. The complaint also reveals that SMART had informed the staffing firm that two additional employees were not welcome back due to their appearance, which suggested they were also underage.
Broader investigation and findings
A Reuters investigation in 2022 uncovered widespread illegal employment of migrant children in Alabama factories supplying parts to Hyundai and its sister brand Kia. This investigation followed the brief disappearance of a Guatemalan migrant child in February 2022, which brought to light the employment of underage workers at SMART’s Luverne, Alabama plant. The 13-year-old girl and her brothers, aged 12 and 15, were not attending school and were working full-time at the plant.
The Labor Department noted that SMART’s operations were so integrated with Hyundai’s Montgomery plant that they functioned as a single employer, making both companies liable under U.S. labour law. This integration also implicated the staffing firm, resulting in the three companies jointly employing the minor.
Hyundai’s response and remedial measures
Hyundai stated that it no longer has ownership in SMART, which changed its name to ITAC Alabama in 2023. Hyundai spokesperson Michael Stewart said the company has worked extensively to investigate and address the issue, taking immediate remedial measures. Hyundai has also required its Alabama suppliers to conduct independent workforce audits to ensure compliance with labour laws.
Stewart criticised the Labor Department’s legal approach, calling it “an unprecedented legal theory that would unfairly hold Hyundai accountable for the actions of its suppliers.” He expressed concern that this could set a concerning precedent for other automotive companies and manufacturers.
Impact and further investigations
The Reuters report in 2022 led to the rescue of several children from factory floors and initiated at least 10 state or federal investigations into child labour practices. This coverage brought significant attention to the problem of child labour in the U.S. and prompted further media examinations.
The U.S. Labor Department has reported a surge in child labour violations, investigating cases involving 5,792 children nationwide in the 2023 fiscal year, including hundreds employed in hazardous occupations. This trend underscores the need for stricter enforcement of labour laws and better protection for vulnerable workers, particularly minors.
The lawsuit against Hyundai and its affiliates marks a crucial step in addressing child labour violations within the automotive industry. It highlights the need for rigorous enforcement of labour laws and greater accountability for companies involved in such practices. As the case unfolds, it could set important precedents for how child labour issues are handled in the future, ensuring that companies uphold ethical standards and protect their workers, especially the most vulnerable.
