Several large part companies in Hyundai/Kia's Alabama-based supply chain are under investigation for child labor violations.
The facts. Proof of at least 4 companies breaking child labor laws in the state has come to light in the last few years. The investigation by state and federal agencies is ongoing in several other plants for similar violations.
The response. At least two parts suppliers indicated in the probe have released statements that no underage hiring has occurred to their knowledge.
Hyundai and Kia condemned any unlawful or unethical workplace practices. They said they require their supplier to strictly adhere to the law. COO Jose Munoz says they told purchasing departments to cease business with named suppliers "as soon as possible." He added that they would stop using third-party staffing agencies to vet and hire employees.
Hyundai then adjusted Munoz's statements toward a quicker and more severe response to the crimes.
Backlash. The discovery of additional violations could damage Hyundai's reputation and its position as America's third-largest automaker by sales.