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11 August, 2005ICEM News release No. 19/2002
Institutional Shareholder Services (ISS), the leading independent proxy advisory firm in the United States, has recommended that shareholders of energy multinational Unocal vote for a proposal concerning workplace practices.
The resolution has been tabled for the company's upcoming May 20 annual meeting. It calls on the board of directors to adopt and implement an enforceable company-wide employee policy based on the Declaration on Fundamental Principles and Rights at Work. Adopted by the UN's International Labour Organisation (ILO), the Declaration opposes child labour and forced labour, while enshrining the right to form and join trade unions and to bargain collectively and the right to no discrimination or intimidation in employment.
The Longview Collective Investment Fund of the Amalgamated Bank and the Paper, Allied-Industrial, Chemical and Energy Workers International Union (PACE) are the sponsors of the proposal. The American labour federation AFL-CIO, the British Trades Union Congress and the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM) are also urging shareholders to support this resolution. PACE is an ICEM affiliate.
"ISS recognises the value of labour standards and formal company policies on human rights practices, particularly for companies that have operations in countries where there are fewer protections for workers," the ISS report states. "Ethical issues aside, there may also be very real implications for the bottom line. As borne out by the recent experience of some high-profile manufacturers and retailers, an increasing number of consumers and shareholders are seriously concerned about whether low wages and abusive working conditions exist in facilities patronised by U.S. companies; firms that do not share that concern can risk damage to their corporate reputation and possible consumer backlash."
"We are pleased that ISS - a truly independent expert - recognises that Unocal's endorsement of global labour standards would benefit the company and its shareholders," said AFL-CIO Secretary-Treasurer Richard Trumka.
"ISS's recommendation is one more indication that this proposal is gaining support among institutional investors," added Kenneth Zinn, ICEM North American Regional Coordinator. "We believe its adoption would promote shareholder value."
ISS noted that a similar proposal submitted at last year's Unocal annual meeting received approximately 23 percent of the vote. "This turnout suggests that many mainstream investors, in addition to socially conscious investors and human rights activists, are concerned about the company's human rights record and involvement in Burma," the report stated. "In light of the serious human rights concerns in a number of the countries where the company operates (including Burma), we believe that this step of publicly endorsing these international labour standards and adopting independent monitoring will benefit the company and its shareholders."
The resolution has been tabled for the company's upcoming May 20 annual meeting. It calls on the board of directors to adopt and implement an enforceable company-wide employee policy based on the Declaration on Fundamental Principles and Rights at Work. Adopted by the UN's International Labour Organisation (ILO), the Declaration opposes child labour and forced labour, while enshrining the right to form and join trade unions and to bargain collectively and the right to no discrimination or intimidation in employment.
The Longview Collective Investment Fund of the Amalgamated Bank and the Paper, Allied-Industrial, Chemical and Energy Workers International Union (PACE) are the sponsors of the proposal. The American labour federation AFL-CIO, the British Trades Union Congress and the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM) are also urging shareholders to support this resolution. PACE is an ICEM affiliate.
"ISS recognises the value of labour standards and formal company policies on human rights practices, particularly for companies that have operations in countries where there are fewer protections for workers," the ISS report states. "Ethical issues aside, there may also be very real implications for the bottom line. As borne out by the recent experience of some high-profile manufacturers and retailers, an increasing number of consumers and shareholders are seriously concerned about whether low wages and abusive working conditions exist in facilities patronised by U.S. companies; firms that do not share that concern can risk damage to their corporate reputation and possible consumer backlash."
"We are pleased that ISS - a truly independent expert - recognises that Unocal's endorsement of global labour standards would benefit the company and its shareholders," said AFL-CIO Secretary-Treasurer Richard Trumka.
"ISS's recommendation is one more indication that this proposal is gaining support among institutional investors," added Kenneth Zinn, ICEM North American Regional Coordinator. "We believe its adoption would promote shareholder value."
ISS noted that a similar proposal submitted at last year's Unocal annual meeting received approximately 23 percent of the vote. "This turnout suggests that many mainstream investors, in addition to socially conscious investors and human rights activists, are concerned about the company's human rights record and involvement in Burma," the report stated. "In light of the serious human rights concerns in a number of the countries where the company operates (including Burma), we believe that this step of publicly endorsing these international labour standards and adopting independent monitoring will benefit the company and its shareholders."