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5 August, 2005ICEM News release No. 39/2000
Major investors are backing calls for change at mining multinational Rio Tinto.
In Britain, where Rio Tinto is headquartered, investors with over 28 billion pounds sterling in assets (over 43 billion US dollars) are supporting two resolutions proposed by the Coalition of Rio Tinto Shareholders. One of the resolutions concerns corporate governance. The other calls on Rio Tinto to ensure that its labour practices worldwide comply with the core standards of the UN's International Labour Organisation (ILO).
British investors who have come out in favour of the resolutions include the Co-operative Insurance Society Ltd. (CIS). The CIS decision was announced by Britain's Trades Union Congress (TUC) today. CIS is one of Rio Tinto's largest shareholders, with more than 23 billion pounds sterling under management. A number of British pension funds have also swung their shareholder power behind the resolutions.
Under its dual-listing structure, Rio Tinto holds two Annual General Meetings (AGMs) - one in London (on 10 May this year) and one in Australia (Brisbane, 24 May). The resolutions will be put to shareholders at both AGMs.
"It should come as no surprise that shareholders are welcoming our proposals with open arms," said TUC General Secretary John Monks. "Institutional investors increasingly see the value of AGM resolutions that promote long-term shareholder value."
The two resolutions are being backed by the TUC, by the trade union movements in Australia and the US and by the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM).
The ICEM has already offered to negotiate and sign a global agreement with Rio Tinto. Under such an agreement, the ICEM and its affiliated unions worldwide would verify, among other things, the company's compliance with ILO core standards. Through the ICEM, unions would have the right to raise with Rio Tinto corporate management any alleged breaches of these standards.
However, the ICEM has also made it clear that Rio Tinto must resolve current industrial disputes in Australia before a global agreement can be signed.
In Britain, where Rio Tinto is headquartered, investors with over 28 billion pounds sterling in assets (over 43 billion US dollars) are supporting two resolutions proposed by the Coalition of Rio Tinto Shareholders. One of the resolutions concerns corporate governance. The other calls on Rio Tinto to ensure that its labour practices worldwide comply with the core standards of the UN's International Labour Organisation (ILO).
British investors who have come out in favour of the resolutions include the Co-operative Insurance Society Ltd. (CIS). The CIS decision was announced by Britain's Trades Union Congress (TUC) today. CIS is one of Rio Tinto's largest shareholders, with more than 23 billion pounds sterling under management. A number of British pension funds have also swung their shareholder power behind the resolutions.
Under its dual-listing structure, Rio Tinto holds two Annual General Meetings (AGMs) - one in London (on 10 May this year) and one in Australia (Brisbane, 24 May). The resolutions will be put to shareholders at both AGMs.
"It should come as no surprise that shareholders are welcoming our proposals with open arms," said TUC General Secretary John Monks. "Institutional investors increasingly see the value of AGM resolutions that promote long-term shareholder value."
The two resolutions are being backed by the TUC, by the trade union movements in Australia and the US and by the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM).
The ICEM has already offered to negotiate and sign a global agreement with Rio Tinto. Under such an agreement, the ICEM and its affiliated unions worldwide would verify, among other things, the company's compliance with ILO core standards. Through the ICEM, unions would have the right to raise with Rio Tinto corporate management any alleged breaches of these standards.
However, the ICEM has also made it clear that Rio Tinto must resolve current industrial disputes in Australia before a global agreement can be signed.