UAW targets Hyundai over child labor allegations ahead of $730M rail car contract

The UAW, which is pushing to organize nonunion automakers in the United States, is highlighting allegations that South Korea’s Hyundai has benefited from child labor through its supplier base.

A Hyundai Motor Group subsidiary, Hyundai Rotem Co., is expected to be awarded a contract worth $730 million for 182 heavy rail cars during a Los Angeles Metro board meeting on Thursday, and the United Auto Workers union and advocacy group Jobs to Move America say they plan to be there to “demand accountability” in the form of a national community benefits ordinance. Jobs to Move America is a California-based organization that, according to information on its website, seeks to “transform public spending and corporate behavior” to advance a fair and prosperous economy for all.

“Given Hyundai's history of benefiting from the use of child labor, the coalition is demanding that Hyundai commit to a national community benefits agreement that would ensure improved working conditions, guard against child labor and create inclusive training and hiring programs for women, workers of color and formerly incarcerated individuals at all Hyundai-Kia facilities and their suppliers,” according to a news release.

Messages seeking comment have been sent to spokespeople for Hyundai and LA Metro, which provides public transportation in Los Angeles.

Community benefits ordinances are not a new idea. Detroit, for instance, has its own ordinance, which has been used to secure commitments from developers, to "address potential negative impacts of certain development projects," according to information on the city of Detroit's website.

The UAW release noted that "many of L.A. Metro’s existing vehicle suppliers already have community benefits agreements that have helped create high quality jobs and highly skilled workforces at companies like BYD, New Flyer and Kinkisharyo."

Hyundai and its suppliers were the subject of a 2022 Reuters investigation titled, “Child workers found throughout Hyundai-Kia supply chain in Alabama.” The issue has continued to be problematic for the automaker, with the U.S. Labor Department obtaining a federal court order later that year to prevent one of the company’s suppliers “from employing 13-, 14- and 15-year-old workers illegally” and shipping goods produced in violation of federal child labor laws, according to a news release.

Hyundai is one of 13 automakers targeted by the UAW in its organizing campaign, and has faced unfair labor practice charges from the union, which accuses the automaker of illegal “union-busting.” The automaker, in response, said its workers “may choose to join a union or not as is their legal right.”

The union’s effort to organize nonunion automakers follows what is widely considered to be a successful and historic targeted strike strategy last year against Ford, General Motors and Stellantis, owner of Jeep, Ram, Chrysler, Dodge and Fiat. The new contracts with the Detroit Three included wage gains and a return of items lost in concessions during past bargaining, such as cost-of-living adjustments.

Contact Eric D. Lawrence: elawrence@freepress.com. Become a subscriber.

This article originally appeared on Detroit Free Press: UAW highlights child labor allegations against Hyundai suppliers