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UAW wants US to ban loans and subsidies to Hyundai over workplace problems

The United Auto worker (UAW) union on Friday urged the Biden administration not to award any grants, loans or other taxpayer assistance until Hyundai Motor agrees to solve problems at work.

On Wednesday, global CEO of Hyundai, Jose Munoz, told Reuters South Korea’s leading automaker is investigating child labor violations in the US supply chain and has a plan to ” cut ties” with Hyundai suppliers in Alabama found to be relying on underage labor.

A Reuters investigative report in July captured children, including a 12-year-old, working at a Hyundai-controlled metal stamping plant in rural Luverne, Alabama, named as SMART Alabama, LLC.

The UAW said Friday’s decision to cut ties with some of Hyundai’s suppliers “will likely result in hundreds of workers losing their jobs, without doing anything to address what appears to be a problem.” system problem.” Instead, the union called on Hyundai to “improve working conditions for American workers who manufacture Hyundai vehicles.”

Hyundai said it “does not tolerate illegal employment practices in any Hyundai organization. Our investigation is still ongoing and we are working with the authorities to resolve the issue. investigate this matter.”

The White House was not immediately available for comment.

Hyundai Motor Group on Tuesday plans to break ground for $5.5 billion tram (EV) and the battery manufacturing facilities in Georgia — and Biden administration officials are expected to attend.

The automaker expects to start commercial production in the first half of 2025 with an annual capacity of 300,000 EVs.

Hyundai is lobbying the Biden administration to amend a law passed in August that would immediately ban electric vehicles outside of North America from receiving a $7,500 consumer tax credit. That makes all Hyundai EVs currently sold in the United States ineligible.

The law includes tens of billions of dollars in new loan programs, tax credits and grants for automakers to build cleaner vehicles.

The UAW had previously partnered with Hyundai and unsuccessfully sought to organize workers at the Alabama plant and other foreign-owned auto plants.


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