Hellofresh down on reports of US child labor probe
Investing.com -- Shares of HelloFresh (ETR:HFGG ) fell over 6% on Monday after ABC News reported an ongoing investigation into allegations of migrant children working at one of its facilities in Aurora, Illinois.
The U.S. Department of Labor is probing the claims that at least six minors, some of whom migrated from Guatemala, were employed in dangerous overnight shifts at the facility, which operates under the brand Factor75, a prepared meal delivery company acquired by HelloFresh in 2020.
The allegations were brought to light by Cristobal Cavazos, executive director of Immigrant Solidarity, an advocacy group that reported the issue to federal regulators.
Cavazos condemned the illegal and exploitative employment of minors in hazardous conditions.
The Department of Labor’s investigation also extends to Midway Staffing, the agency responsible for hiring employees at the facility. Midway Staffing has not responded to ABC News’ requests for comment.
In response, HelloFresh stated it was "deeply troubled" by the allegations and emphasized that the company immediately terminated its relationship with the staffing agency upon learning of the situation.
HelloFresh’s spokesperson said that it maintains strict protocols to ensure all vendors adhere to its rigorous global ethics and compliance standards, including a zero-tolerance policy for child labor, as per the report.
Labor Department records show that in fiscal year 2024, 4,030 children were found working in violation of child labor laws across various industries, nearly half of them in hazardous conditions.
The situation at the Aurora facility is not an isolated case. Similar allegations have emerged across the food and agriculture industries.
Last month, a sanitation contractor in Sioux City, Iowa, was fined for employing children to perform dangerous cleaning tasks at a pork processing plant.
The children reportedly handled corrosive chemicals and hazardous machinery during overnight shifts.
In Massachusetts, a federal lawsuit filed in September accused a seafood processing plant of forcing immigrant teenagers to work perilous overnight shifts. Advocacy groups and labor experts have highlighted how such practices persist despite public outrage and legal action.
Reid Maki, Director of Child Labor Advocacy for the National Consumers League, criticized the pervasive nature of child labor violations in the U.S. and called for increased funding for the Labor Department to enhance enforcement.
The fallout from this has raised questions about HelloFresh’s oversight of its supply chain and vendor relationships.
With consumer trust at stake and regulatory investigations underway, the company faces challenges in addressing these allegations and restoring its reputation in a highly competitive market.
The issue has also reignited calls for stricter labor regulations and corporate accountability in industries that rely heavily on migrant labor, particularly amid rising reports of underage workers in hazardous roles.
Source: Investing.com
