Launch of Labour Rights Investor Network

 

Launch of Labour Rights Investor Network coincides with event at US Department of Labor

The Labour Rights Investor Network (LRIN) is a global initiative that brings together asset managers, asset owners and investment service providers committed to integrating labour rights into their stewardship practices. LRIN signatories include the New York City Employees’ Retirement System and Teachers’ Retirement System, Sweden’s Folksam and the UK-based Local Authority Pension Fund Forum.

The launch of the Network coincides with an event at the US Department of Labor aimed at highlighting how businesses and investors can become more resilient and competitive by harnessing the growing global movement for worker voice. The event, “New Frontiers for Empowering Workers and Business,” will feature Acting Secretary Julie Su alongside New York City Comptroller Brad Lander, representatives from Microsoft and others from the labour and business communities.

The Network’s guiding Investor Statement notes that labour rights are “fundamental pillars of human freedom,” as recognized by the United Nations (UN) and the Organisation for Economic Co-operation and Development (OECD).

Beyond the fundamental nature of the rights to freedom of association and collective bargaining, members of the Network also recognize the investor case for empowering workers. “Companies that respect labour rights reap many benefits, such as greater productivity, safer workplaces, and improved employee engagement,” according to the LRIN Investor Statement. The LRIN is housed at the Global Unions’ Committee on Workers’ Capital (CWC), a committee of the International Trade Union Confederation, the Global Union Federations and the Trade Union Advisory Committee to the OECD that advocates for the responsible investment of workers’ capital.

“With this Network, we will bring the voices of workers whose fundamental labour rights are violated to the attention of investors committed to ensuring those rights are upheld in their portfolios. This will enable those investors to improve their human rights due diligence, mitigate risks and uphold responsibilities under international norms and frameworks,” said CWC Chair Christoffer Jönsson.

Signatories to the Investor Statement request that the boards and senior management at investee companies take responsibility for labour rights oversight, ensure respect for workers’rights to freedom of association and collective bargaining, and provide disclosures on labour-related metrics.

The Labour Rights Investor Network will then provide the necessary information and tools for investor members to integrate this into their stewardship practices. 

Investor Quotes

“As financial stewards responsible for the retirement savings of thousands of unionized workers, we want to ensure that the companies in which we invest our capital are in turn investing in their workforces. Ignoring fundamental workers’ rights risks eroding long-term shareholder value. The historic movement to ensure labour rights are respected has led to measurable gains for hundreds of thousands of workers. We are proud to stand boldly with the Committee on Workers’ Capital to announce this important initiative, which centres respecting labour rights as a business imperative key to mitigating systemic risks.”
— BRAD LANDER, NEW YORK CITY COMPTROLLER

“We are delighted to be an early signatory to Labour Rights Investor Network, as we see the real value it will bring to strengthening our stewardship. We expect investee companies to respect freedom of association and collective bargaining, but know far too often this fails to happen in reality. Through gaining resources and hearing insights directly from unions, we believe that the Labour Rights Investor Network will help us address the problem.”
— EMILIE WESTHOLM, HEAD OF RESPONSIBLE INVESTMENTS AND CORPORATE GOVERNANCE, FOLKSAM

“LAPFF is very pleased to support the launch of the Labour Rights Investor Network as a signatory. Over the years, the Forum has engaged with numerous companies and unions over management of workforce issues, and these topics are being raised more frequently. We have also found on issues like climate change that collaborative networking initiatives can increase the effectiveness of investors’ stewardship activity. So, the creation of a network focused on rights at work could not come at a better time.”
— COUNCILLOR DOUG MCMURDO, LAPFF CHAIRMAN

https://www.workerscapital.org/labour-rights-investor-network/

Committee Workers Capital (CWC) online Conference 2020 - The Road Ahead

 I logged on this evening to the first session of the Conference. The CWC describes itself on its website "WorkersCapital"   "With over 700 participants from 25 different countries, the Committee on Workers’ Capital is an international labour union network for dialogue and action on the responsible investment of workers capital. We connect labour activists and asset owner board members from around the world to promote information sharing and joint action in the field of workers’ capital. We are a joint initiative of the International Trade Union Confederation (ITUC), the Global Unions Federations (GUFs) and the Trade Union Advisory Committee to the OECD (TUAC)".

I have been to physical meetings of its annual conference in London and Amsterdam in the past and always found them really interesting and useful. Obviously this year's setting it is very different.

The conference was opened by Tuur Elzinga, Vice-President and International Secretary of the Dutch Confederation of Trade Unions (FNV), Chair of the CWC.

Sessions start 4pm (Current UK time) and last 75 minutes. There are recordings available of each session. There are also 3 "Campaign Spotlights", an interactive space where CWC participants will showcase a priority initiative from their union.

you can register below

https://www.eventbrite.ca/e/cwc-2020-virtual-conference-tickets-123523793993

My question to session one panel "What does the panel think about pooled pension funds that refuse to allow asset owners to vote shares at AGMs in line with their ESG policies. Or is this only a British problem?" but panel ran out of time. 

16 Nov 

DAY 1: 4pm for 75 mins
How do asset managers view and incorporate worker-backed evidence in public equities?
This session will evaluate current practice and potential to improve how asset managers incorporate trade union and worker provided information in their evaluations of companies. (Chaired by Janet Williamson from TUC)

The first Campaign spotlight for today was by on UNICARE on the need for workers capital to take action over Covid 19 and nursing home deaths. A fascinating presentation which shows that "for profit" nursing homes suffer more deaths led by Adrian Durtschi, Head of UNICARE (Switzerland) and Lisa Nathan, Investor Engagement Advisor . Next spotlight was "Democratic Capital and workers voice" by Dr. Ewan McGaughey, King's College. A much needed argument to win a more accountable economy.

DAY 2: 4pm
Racial Justice and the stewardship of workers' capital
Global protests from the Black Lives Matter movement have brought attention to systemic racism in every corner of the economy. This session will begin with a panel of speakers, followed by a participant-led Q&A to share perspectives and strategies on how investors can approach the issue of racial justice.

DAY 3: 4pm
Tools and examples to hold asset managers accountable
This session will review recent tools and examples used by asset owners to hold their asset managers accountable on ESG issues, with a particular focus on the "S".

DAY 4: 4pm
Charting the Road Ahead: A strategic brainstorming session on CWC priorities for 2021
This interactive session will be an opportunity for participants to share their views on priorities for the 2020-2021 CWC workplan. What does a worker-centric agenda look like in this new context of a global health and social crisis? Discussion will be facilitated using a mix of discussion groups and open-ended discussion

Workers' Capital Conference 2015 (Day 2)

This is a little late. I have posted here and linked here on the first day of this global annual conference for trade union pension trustees and organisers that took place earlier this month.

(On my https://twitter.com/grayee account I tweeted on the presentations and speeches which I have now used to write this post).

The day was started by a welcome speech from Toni Heerts (FNV) Committee Workers Capital Chair & Co-Chair Paddy Crumlin (ITF). 

The 1st plenary was on "Embedding pro-labour practises & policies for responsible investment". Willem Noordman from the Dutch Pension Federation recognised that engineering unions would have a different view of arms production than others but all unions have plenty in common. There is a real dilemma that if we disinvest from a company because we don't like their practises that we lose all influence over them.

Tom Croft, from the USA Steel Valley Authority in Pittsburgh pointed out that the "S" in "ESG" principles (Environmental, Social and Governance) is too often forgotten.

Pension trustee and national officer, John Neil, from Unite spoke about the Trade Union Shareholders Organisation (TUSO) in the UK. Trade union staff pension funds in the TUC, UNISON, Unite and the ITF combine collectively to make sure that all the shares they own are voted in the interests of "pro-labour" at company AGMs (such as the rogue UK company "Sports Direct" the following day)

A number of international speakers mentioned TUSO at the conference and that they hoped that something similar would be set up in their countries.

I asked the question is there evidence collated of "pro-labour" companies that have proved to be long term good investments that we can show our trustee Boards? Tom Croft responded that in the USA there are certain Private Equity companies that have humanely restructured firms & saved jobs.

Next Janet Williamson from the TUC chaired a panel on 2022 World Cup construction deaths in Qatar.  Gemma Swart from the ITUC spoke about the modern day slave camps in Qatar and that investor pressure over reputational risk can bring about change since the whole country is essentially a family business.

Roel Nieuwenkamp from OECD pointed out that they have introduced binding guidelines on contractors including supply chains with a grievance procedure. "Soft law with hard consequences". He used an example of a complaint by a NGO against Formula1 over human rights in Bahrain and there could be a similar one against Fifa over Qatar.

Hugues Letourneau  from CWC on their human/labour rights campaign in Qatar points out that there has been 279 Indian migrants deaths so far. They are putting pressure on UK and French construction firms via "investor letters".

Cllr Richard Greening from LAPFF  spoke about their engagement with companies exposed in media working in Qatar at AGMs & face-to-face meetings.

(after this session I had to go to a work meeting and missed the debate on infrastructure investment which I understand was pretty heated at times. Some delegates believed that such investment was being misused to privatise public services)

I came back to hear Nick Robins from UNPRI enquiry on the "Design of a Sustainable Financial System".  He believed that there was evidence of a "quiet revolution" in Green investment despite agreeing the Governor of the Bank of England that there was a "tragedy of horizons".

Then 'Labour Standards in Sustainability Rating: How well they incorporated?' Chaired by Elizabeth Umla.

John Jarrett from "FTSE for good" index explained how they did their ESG research and how core Labour standards from all companies are assessed including the supply chain.  Antti Savilaakso from MSCI admitted they have a somewhat similar method to FTSE. They have 130 analysis serving 900 clients. Their key issue is to decide whether bad company behaviour is a one off or structural?

Keeran Gwilliam-Beeharee from Vigeo said they do things differently. They start with the four core ILO standards. Governance issues are the best reported but Labour issues have a low coverage and there is decreasing information on it.

Mario Enrique Sanchez Richter, CCOO trade union economist spoke about his report on the sustainability of rating agencies and how well do they measure? His conclusion was that they do not measure very well.

Final speaker was  Brian Daley from ACTU who stated bluntly that he had not seen any evidence that Labour/Social ratings were actually used by fund managers or advisers to make buy or sell decisions.

In the Q&A Keeran responded to a question on why Labour issues are not being covered by saying that Governance issues such as corruption are seen as more important and lack of investor pressure.

I asked the panel whether rating agencies could give evidence of Companies with good Labour ratings having better long term performance? If they did this would this increase demand for such ratings? John replied that he was not aware of such evidence and agreed that Green and governance issues tended to "crowd out" Labour issues. Brian responded that we should be asking these questions and this should be at the heart of what trustees do.

The closing session was first a video from Liz Shuler, AFL-CIO & CWC co-chair on building an economy & retirement future that we can be proud of. Then final remarks from ITUC General Secretary Sharon Burrow, who said we want rights over our capital but we also want sustainability. While we respect workers in the carbon industry there will be no jobs in a dead planet.