Release Date: Mar 14, 2003
NEW YORK, NY In response to shareholder pressure, Unocal Corporation has announced the adoption of new company-wide principles that recognize fundamental rights in the workplace. These include freedom from discrimination in employment, elimination of child labor, freedom from forced labor and freedom of association and collective bargaining.
Amalgamated Bank Chairman Bruce Raynor says of the new Unocal principles: "The real test for Unocal now is to implement its policy - which will require drastic steps given their operations in Burma, where oppression in the workplace is rampant and the government is complicit." As implementation and enforcement of the principles in Unocal operations is part of the shareholder proposal, Raynor expects that investors will continue to press the issue with the company.
Amalgamated Bank put a proposal before shareholders at the 2002 annual meeting urging Unocal to adopt and implement fundamental principals and rights at work. The proposal received 32.8 percent of the votes cast. At that time, it was the highest ever vote on a human and labor rights shareholder proposal. Amalgamated Bank re-filed the proposal in December 2002 for consideration at the upcoming 2003 Unocal annual meeting. The Paper, Allied-Industrial, Chemical and Energy Workers International Union (PACE), the Unitarian Universalist Service Committee with Walden Asset Management and nine religious institutions affiliated with the Interfaith Center on Corporate Responsibility co-filed the proposal.
The Amalgamated Bank proposal urges the Unocal board to adopt and implement an enforceable company-wide employee policy based on the International Labor Organization's (ILO) Declaration on Fundamental Principles and Rights at Work, including bans on child and forced labor, freedom from discrimination and the right to form and join trade unions and to bargain collectively.
Unocal has been the target of criticism by human rights activists as well as shareholders because of its business operations in Burma. Unocal partnered with the Burmese government in a pipeline project that hired the Burmese military to provide security services. In doing so, the military committed numerous human rights violations, including the use of forced labor. Unocal's investments in Burma have exposed the company to significant potential liabilities resulting from two lawsuits filed by Burmese refugees in U.S. courts.
Amalgamated Bank's LongView Funds invest the assets of workers' retirement funds and engage corporations to reform corporate governance and practice. Amalgamated Bank
