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Hyundai Rotem Fined by Brazilian Government for Exploiting Workers
Embroiled in Controversy over Labor Exploitation
Hyundai Rotem Fined by Brazilian Government for Exploiting Workers
  • By Jung Min-hee
  • March 13, 2020, 18:47
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Hyundai Rotem's electric train now in operation in Brazil

Hyundai Rotem has recently been fined by the Brazilian government for exploiting the workers at its rolling stock assembly plant in Araraquara, a city in the state of Sao Paulo in Brazil.

According to reports by local media outlets, Hyundai Rotem, a subsidiary of Hyundai Motor Group, paid 120 million won in fines for not paying overtime wages to workers for the hours worked in excess of the regular workweek.

Workers at the Hyundai Rotem plant filed a complaint with the local labor authority, saying they have been working 12 to 14 hours a day, including Saturdays, Sundays and public holidays.

Brazil's Ministry of Labor (MPT) immediately launched an investigation and said that Hyundai Rotem had its factory staff work overtime without paying due wages.

The court in Araraquara ordered Hyundai Rotem to pay a fine of 1 million Real (about 298.6 million won) in total, including US$10,000 per worker.

The court said Hyundai Rotem workers, who suffered from overwork, should be guaranteed holiday in accordance with the labor law.

Hyundai Rotem expressed its intention to appeal immediately after the ruling, but gave up its appeal and settled the controversy over the labor exploitation by paying the final fine. Before the fine was imposed, the union members agreed to settle the controversy.

Hyundai Rotem vowed to abide by the Brazilian labor law.