Monday, July 14, 2008

Burma Campaign – Committee for Workers Capital

The only session I managed to attend at this year's meeting of International Union Pension trustees (last week), was the opening introductions and then the discussion over Burma.

The meeting was chaired by John Maitland, from the Australian Council of Trade Unions. Rob Lake, head of sustainability at the Dutch pension group APG and Jo Allen, head of SRI engagement and responsible investment for CIS (Co-op) gave a hard headed presentation on investment in Burma.

They both basically argued that you still needed to pursue engagement policies with companies such as Total who trade with Burma. On balance they do more good than harm by being there and if they were to go, they would be replaced with companies who will not challenge the regime at all and would make things worse for their workers. Surprisingly this view was somewhat supported by black South African delegates present, in light of their experiences during the battle against Apartheid. Unsurprisingly, French delegates also supported Total and said more time should be given for engagement.

An American colleague made it clear that this was a trade union meeting of trustees and the international trade union movement had made it clear that they support disinvestment. We should show solidarity with the Burmese democratically elected government (now repressed by the military junta) and the exiled trade union movement who call for such action.

I suggested that the time for engagement was now over. Engagement had been going on for decades and that it had not worked. At some point you have to disinvest otherwise you run the risk of undermining the argument for engagement. This is the exception that proves the rule. Of course, arguing for disinvestment in a particular country due to its regime is different than arguing for disinvestment in a particular company. You still have to have pretty good evidence that the investment is likely to backfire and damage the pension fund to satisfy the fiduciary rules.

However, I think on balance that in Burma you can argue this. The worse news was that a brand new off shore gas field and pipe line is being considered. South Korean companies are thought to be involved. If built this would not only generate hundreds of millions of dollars for the military regime in taxes, kick backs etc but also would involve forced labour and driving Burmese people off their land as happened in previous pip eland construction projects.

It was a pity I missed the meeting the following day with the Burmese Campaign UK.

Also present was top UNISON rep Mark Rayner, who is a member nominated representative on the Greater Manchester LGPS with Donald McDonald who is a BT pension trustee and Chair of the UN PRI (United Nations Principles for Responsible Investment). Mark promised me to make a guest post on what happened during the rest of the meeting.

This is what the UNISON website says about Burma investments

Your pension fund can help the Burmese people

(06/12/07) Do you contribute to your employer's pension fund? If you do then you will be able to take part in a global campaign to help the Burmese people achieve democracy.


Your pension fund may have shares in companies that trade with the military dictatorship. The Burmese trade unions want you to tell your fund trustees or reps to stop investing in companies that trade with Burma.

UNISON is supporting a call for trade union members across the world to get involved. And this is how you can do it.

Write or send an email to your pension fund administrator - go to your employer's web site to find out who this is or ask your UNISON branch if they know.You should ask your pension fund board of trustees or pension committee to request that they or your investment managers report to you on:

what shares the fund holds in companies with ties to Burma

their assessment of the financial, legal and political risks this may pose to your savings and the reputation of the fund

their strategy for addressing such risks

Remember, your pension fund is your savings. You have a right to know how this money is invested, and a right to ask if investing in companies that make money from a military dictatorship is putting your savings at risk.

Since 2000, the international trade union movement has called on all companies with business links in Burma to sever those links and withdraw from the country.

In October 2007, the International Trade Union Confederation asked its affiliated organisations to engage in a shareholders' campaign which may include disinvestment from companies linked with Burma.

This position supports that of Burma's democratically-elected ruler, Aung San Suu Kyi, as well as the Federation of Trade Unions-Burma, which operates clandestinely inside and outside the country.

Foreign companies play a pivotal role in maintaining a steady flow of capital to the military dictatorship, and by extension, in upholding the country's brutal regime.Military rule and repression has led to massive and systematic violations of human and workers' rights.

In particular, the military regime oppresses and exploits its population through the widespread use of forced and compulsory labour.

2 comments:

Anonymous said...

BEST wishes from UNISON's furthest flung member on the Thai/Burma border: Check out http://www.amnesty.org.uk/events_details.asp?ID=778

The Burma play: A Comedy of Terror
From: Mon 4 August 2008
To: Sun 10 August 2008

Described by John Pilger as 'a vital glimpse of the courage and suffering of the Burmese people', the Burma Play is brought to the Edinburgh Festival by Northern International Theatre in conjunction with Amnesty International, and the Burma Educational Scholarship Trust and Unison.

Tickets to the play will cost £8/£5
with all procedes to BEST and Burma Campaign UK.

John Gray said...

Hi Murray
Many thanks for your comment. Hope things are okay out there for you? I have made another post publicising this event (and other things) http://grayee.blogspot.com/2008/08/beautiful-burma.html.

If you get the chance, perhaps you could send me a guest post on what you are doing? (email via my profile).

Good luck!