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20 June, 2011
The ICEM and Public Services International (PSI) last week supported the OECD petition under the Guidelines for Multinational Enterprises of joint US affiliate Utility Workers Union of America (UWUA) against United Water, Suez Environnement, and GDF SUEZ for alleged environmental deceit and unfair labour practice complaints lodged by the US government against United Water.
GDF SUEZ is signatory to a Global Framework Agreement (GFA) with ICEM and PSI, and compliance with the OECD Guidelines is one framework inside the GFA. In a 14 June letter to the National Contact Points of the French and American governments, ICEM and PSI General Secretaries Manfred Warda and Peter Waldorff called on the respective contacts points to intervene and mediate the charges contained in UWUA’s petition.
“We have been aware of United Water’s negligent social conduct in the United States since December 2010, first related to the felony indictment of the Clean Water Act by the US Justice Department, and later (May 2011) of the US National Labor Relations Board’s (NLRB) issuance of labor law complaints against United Water for breach of standard collective bargaining practices with the UWUA,” wrote the two Global Union Federations.
Under the GFA, ICEM and PSI had previously criticised GDF SUEZ over United Water’s derisive social conduct in America. United Water is wholly owned by Suez Environnement, which in turn is 35% by GDF SUEZ. The GFA, signed in November 2010, covers all GDF SUEZ businesses, including ones in which the company holds a minority stake.
The UWUA’s OECD complaint cites the NLRB’s unfair labour practice complaints against United Water at two separate locations where the UWUA represents workers and is now negotiating with the company over renewal agreements. The US government agency charges management with failure to provide relevant information to the union related to bargaining. The GFA specifically references transparency in labour-management forums in pledging adherence to the OECD Guidelines and the ILO Tripartite Principles, both of which have clear language regarding exchange of information for “meaningful negotiations” in social partnerships.
The alleged environmental infractions already had seen the ICEM and PSI take issue with United Water. Those charges stem from December 2010 when the Justice Department issued a criminal indictment charging that United Water intentionally manipulated E.coli bacteria monitoring tests at a wastewater treatment plant in the US state of Indiana. The indictment alleges that United Water engaged in a scheme in which it increased chlorine levels on government-mandated E.coli inspections, and then lowered chlorine input levels after such testing. The US government alleges United Water did this as a costs-savings measure. The company has pleaded not guilty to the charges. (See ICEM report on that alleged environmental crime here.)
The UWUA filed the OECD petition on 8 June at the French embassy in Washington, DC, along with the American NGO Food and Water Watch, at the French embassy in Washington, DC, as well as to the US government’s National Contact Point. Under the OECD complaint process, both the US and French governments are obligated to forward the submission to the French parent companies and to the US subsidiary for a formal reply.