Sumi share price falls as more allegations of child labour surface.
Shares in Motherson Sumi Systems fell by more than 5% on October 26th, following reports that the company was using child labour in India. The news came just a day after the share price fell by 10% following an allegation that the company was using child labour in China. Shares have been falling steadily since May 2021, when a strike at one of its Chinese factories sparked protests and riots.
What is Motherson Sumi Systems?
Motherson Sumi Systems is an Indian auto parts manufacturer, with manufacturing facilities in India and China. It also has offices in the United States, Europe and Japan. It’s one of the largest auto parts manufacturers in India and its products are used by many major car manufacturers around the world.
What is Child Labour?
Child labour refers to children under 18 years old working for wages or other remuneration. It’s illegal to employ children under 14 years old without their parents’ permission, but it’s still common practice for companies to do so. This is particularly true in developing countries where there are no effective enforcement mechanisms or poverty makes it difficult for families to provide for their children.
