Hyundai Montgomery launches ‘game-changing’ childcare program for employees

Hyundai Montgomery launches ‘game-changing’ childcare program for employees


MONTGOMERY, Ala. – Management at Hyundai Motor Manufacturing Alabama announced the launch of a new program Friday that it says will not only make child care easier for its employees, but provide a monthly payment.

The new deal was based on a new partnership between Hyundai and PRODUCERa childcare technology platform that connects employers and childcare providers.

Providing access to child care for workers in today’s world, said Reggie Williams, senior manager of human resources at Hyundai, was “crucial” in improving worker retention and attraction, especially in Alabama and labor participation rate of 57.4%among the lowest rates in the country.

Reggie Williams (left) shakes hands with Eric Cutler (right), senior director of strategic planning at TOOTRiS, during a press conference March 15 in Montgomery.

“Our partnership with Tootris today represents our belief that a family-oriented workplace that thrives is at the core of our commitment,” Williams said.

“For us, we are very excited because this represents a partnership that we hope will be lasting, which will help us serve our team members in the best possible way.”

Under the partnership, launched the same day as the announcement, every employee at the Hyundai Montgomery plant with a child under the age of 13 will be eligible to receive 25% of their monthly child care costs, up to $150. The program will also allow staff to use the TOOTRiS platform to easily connect with all local child care providers.

According to TOOTRiS, child care in Alabama costs, on average, $120 to $200 per week.

Last year, Governor Kay Ivey he shifted his focus working to address the low participation rate of the state workforce, a change that occurred as a “reform” workforce development program. was launched in January and Lt. Gov. Will Ainsworth. The plan, Ainsworth said, will manifest itself as several bills, which have yet to be introduced in the Alabama Legislature.

In designing a staff development program, Ainsworth and others used feedback received over time many legislative meetings last year which sought to identify employment barriers, while among the most common barriers was the lack of childcare.

The hope with Hyundai’s new childcare program, said Alabama Commerce Secretary Ellen McNair, is that the model will be adopted by companies across the state.

“Increasing labor force participation is a key goal of Governor Kay Ivey; programs like TOOTRiS really make a difference,” McNair said. “We hope that other industries will follow Hyundai’s lead in taking this step.”

Eric Cutler, senior director of strategic planning at TOOTRiS, said that in addition to helping employers retain and hire workers, expanding access to childcare will also have a “reverse effect” on the childcare community due to financial support and ease of access. . .

“Child care is no longer a family issue, it has become a business issue; without childcare, parents can’t work, without childcare, parents can’t accept promotions, they can’t accept extra shifts, and they can’t move,” Cutler said.

“From a business perspective, this means a less productive workforce, this means more absenteeism, recruitment challenges and less opportunities for growth.”

Cutler said that more than 50% of parents need paid care to work, 76% of parents used paid leave to supplement child care when they were away, and that 69% of parents said childcare costs have caused careers. changes. Hyundai’s new plan, he said, will work to remove those barriers.

Joe Anderson, who has worked at the Hyundai plant for two years, spoke at a press conference.

“I’m the father of twin daughters, they’re 2 years old, and my wife and I were struggling trying to find the right daycare,” Anderson said.

“I feel that the TOOTRiS program will help because it takes the guesswork out of it; all we have to do is see, look, read reviews and go there.”

Anna Bucklew, president and CEO of the Montgomery Chamber of Commerce, speaks at a March 15 news conference in Montgomery.

The announcement of the deal comes shortly after Hyundai employees it reached a point in their ongoing efforts to unionize under the Auto Workers Union in January. More than 30% of its workforce has pledged to support the union, with workers citing poor pay and a lack of retirement benefits as among their main complaints and the company.

Gov. Ivey has come out in force against Union efforts – which already see some success at the Mercedes-Benz plant near Tuscaloosa – as it were Alabama Chamber of Commerce and leadership.

Speaking on behalf of Hyundai, Williams told the Alabama Daily News that the announcement is not a response to the union’s efforts. Williams said, however, that talks with TOOTRiS about joining the plan began last year in September or October, during which time the UAW has been on strike against Ford, General Motors and Stellantis.

“I don’t have a lot of say in what the UAW is doing, but I think we like to listen directly to our team members, and we feel like that’s the best way for us to be able to respond to their needs,” Williams said. say.

Anna Bucklew, president of the Montgomery Chamber of Commerce, said the organization felt there was “no need for a union in our workforce,” and that it would be “a loss to our people here in the community.”

“The governor has been very clear, it’s very bad for Alabama, we see no reason for outsiders to come into our community and take advantage of the backs of our workers by taking money out of their pockets and sending it to Detroit when our companies are already committed,” Bucklew told ADN.

Bucklew’s comments supported that developed by Ivey in February during a Montgomery Chamber event, where he called on business leaders and employers to stand up against what he called “the threat from Detroit,” where the UAW is headquartered.