The SOC Investment Group recently released a letter addressed to the Hyundai Motor Company demanding that they change their business practices after it came to light in December that child labor was allegedly being used in Hyundai's Alabama supply chain.
An investigation by Reuters in December found that several suppliers of Hyundai Motor Company and sister company Kia Corporation were using child labor at factories in Alabama. There have been past reports of labor violations by these plants in Alabama, which employed children as young as 12. These plants include Ajin Companies, SL Alabama, Hwashin and SMART Alabama.
The workers at these Hyundai factories were hired partially by third-party staffing companies. With both minors and undocumented workers who were hired, false identification and documentation were used to hire them, sometimes with the help of third-party staffing companies.
According to the Montgomery Advertiser, The SOC Investment group is an investor of Hyundai, which has funds that hold an estimated 27,000 shares of Hyundai stock. The group sent a letter to Hyundai demanding that the auto company change its business practices to cease all unlawful child labor practices.
“We are concerned with the latest reports of child labor at Hyundai Motor Company supplier factories in Alabama,” the SOC Investment Group said in the letter. “In light of new reports of child labor being used in the company’s production chain, as well ongoing investigation by state and federal regulators, we urge you and your fellow directors to promptly take the following steps: Commission an independent third-party review of the alignment between Hyundai’s human and labor rights commitments and existing practices in its supply chain and operations. Commit to ongoing third-party monitoring of Hyundai Motor Company’s U.S. supply chain. Appoint a human rights expert to the board of directors. Commit to ensuring continuity of employment of workers in Hyundai’s U.S. supply chain, both for direct and contract workers, so that those workers who have helped uncover unlawful practices do not suffer as a result.”
The SOC Investment Group goes on to list all the concerns they have relating to the alleged child labor, and says that they are hoping to hear back from Hyundai by Wednesday, Feb. 15.
This is not the first time the SOC Investment Group has raised concerns regarding child labor allegations against Hyundai. The group released two previous letters, on Oct. 18 and Nov. 3, that called for similar action.