The plant, located in Montgomery, Alabama, is owned by SMART Alabama LLC and has been supplying SUV parts for the Korean giant since 2003. Consequently, as reported by Reuters, Hyundai vehicle owners and the United States (U.S.) Department of Labor have both filed a class action and federal lawsuit against the subsidiary for “lying about not having child labor involved in vehicle production.”

A Blind Eye Towards Child and Immigrant Labor

According to a recent report by Amnesty International (AI), international conglomerates have been integrating child and immigrant labor into their supply chains to reduce the financial burden of paying workers a decent wage. Indeed, many conglomerates are happy to make use of this type of labor to reduce the price of products while maximizing the quantity produced. However, the United Nations (UN) has condemned this form of labor as a strict violation of international law, and it remains a problem that undermines the transparency and social responsibility of companies. Thus, it is important to determine the root of the problem to reduce the exploitation of children. The same report by AI states that companies including Samsung, Apple, and especially Hyundai, have a history of using child and immigrant labor as a “cheap workforce” that is easy to manipulate.

The controversy surrounding Hyundai factories in the U.S. is an example of this, with accusations that two facilities hired children to work on car components for international consumers. Investigative journalists from Reuters made the discovery when investigating the disappearance of a young girl from a Guatemalan migrant family. Later, it was revealed that she was working at the SMART factory alongside other underage workers.

Preventing the Use of Child Labor

The International Labor Organization (ILO) reported that 160 million children are involved in child labor worldwide, but most consumers would be dismayed to hear that their purchased products were the result of illegally exploited minors. However, some consumers may ignore or explain away this modern form of slavery because they ultimately benefit from the lower prices. However, it is one thing for consumers to be unaware of information they do not have, but for companies to deceive them by actively claiming to adhere to strict policies against child labor while doing the opposite is inherently wrong. According to Professor Rhee Dong-Eun (Division of International Studies), one plausible explanation of why willful ignorance against child exploitation exists is in the interests of companies and parents. Companies will use labor at low wages while parents can earn economic benefits by letting their children earn money. There also exists the case in which teenagers will get involved in child labor as means of escaping family problems or to earn a living as well.

Prof. Rhee has also explained that there are economical and ethical aspects behind the child labor problem. Ethically, a human society “where everyone is given fair opportunities” is likely an element to be accepted, but people born in low-income societies do not have educational opportunities, which is not fair. A child is not ready to judge their life, which makes the child labor undesirable in terms of human rights. Economically, education is the crucial factor to attain sustainable economic development. If education is ruined by the existence of child labor, the country cannot get out of the stage of poverty.

Reducing Child Labor Internationally

To increase awareness of child labor and encourage actions against it, more press coverage on child exploitation is required. In some cases, the media can force companies to re-examine the legality of their supply chain. As an illustration, for Hyundai and SMART, media coverage and online articles from Reuters and The Washington Post convinced Hyundai to open an investigation and pursue more transparency within its supply chain. Thus, the press can provide a monitoring function when the illegal and/or unethical actions of companies are exposed to the public, forcing these companies to re-evaluate their processes.

Professor Rhee has also proposed how child labor could be reduced or prevented in both developed and developing countries. In developed countries, social systems that provide education free of charge already exist, and environmental, social, and governance (ESG) management also emphasizes corporate responsibility. A company involved in child labor will have a damaged reputation and reduced stock prices. However, in developing countries, legal enforcement can hardly solve the problem. It is necessary to provide incentives to prevent child labor. For example, providing free school meals and giving financial aid for families sending their children to school seem to work. Since limitations in the government’s financial resources and capabilities also exist, it is important for the international community to provide official development assistance (ODA) to those in need."

Overall, child labor is an issue that can arise in both developing and developed countries, but it can also be prevalent in developed countries. Many consumers and politicians in developed countries tend to downplay it, thus hindering attempts to prevent it. Child labor is a strong violation of human rights, yet it runs rampant. Therefore, it is important to hold companies to their words and actions and to cooperate with local governments to halt the exploitation of children. The issue remains controversial, but it is unacceptable to have children working in dangerous environments in the first place.