Modern supplier terminates Alabama prison labor contract

Prison laborers in Ju-Young reportedly work under threat of punishment, raising serious concerns

In 2022, it was reported that some of Hyundai’s suppliers in the United States used child labor. By 2023, the federal government stepped in and Hyundai cracked down on the practice. Now, in 2024, Hyundai’s suppliers are using another controversial form of labor – prison labor. Well, they did, until public pressure ended it.

The affected supplier is Ju-Young, a Korean company involved in Alabama’s prison labor program. The program offers incarcerated people the opportunity to work outside prison walls and earn a modest wage. While this may seem like a positive opportunity at first glance, a report suggests the reality is much more complicated.

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according to a new york times In the report, an inmate working for Ju-Young likened the arrangement to a choice between “bad” and “worse.” “You have no choice. If you don’t, they will send you back to the camp and you will be subject to disciplinary charges.” The prisoner is currently serving 15 years of a 20-year sentence for selling marijuana. Generally speaking, disciplinary charges may result in the possibility of loss of parole or a longer sentence.

The report goes on to say, “An unnamed employee at the Ju-Young plant said Mr. Anderson’s description of the prisoner working conditions, including the implicit threat of punishment, was correct.” Clearly, this is not a good idea for Ju-Young or Hyundai Motors Not good for the situation, a few weeks after the report was released, the supplier terminated its prison labor contract with the state.

For its part, the automaker said “Hyundai is not involved in individual hiring decisions” at independent suppliers, a spokesperson told The New York Times. He added: “Hyundai requires all suppliers to comply with the law and its Supplier Code of Conduct, and we have a record of taking action after learning of alleged violations.”

To be fair, Hyundai isn’t the only company caught in the center of America’s prison labor debate. Some states have programs that allow incarcerated people to work for extremely low wages—often earning less than $10 an hour, and in many cases less than $1 an hour. Opponents of such work say workers are often treated inhumanely with little regard for their safety or health.

What’s even more disturbing is that this situation has become commonplace. From clothing to auto parts, prison labor plays an obscure role in many industries. But the ethics of this setting are murky at best, especially when prisoners are forced into these conditions. If your “cheap labor” model involves exploiting those who can’t say no, it might be time to rethink your business strategy.