Independent Board Directors to save the World? CWC Amsterdam 2009

I am just back this evening from attending a one day Pension workshop organised by the Committee for Workers Capital (CWC).

This took place in the headquarters of the FNV in Amsterdam. The FNV is the Dutch equivalent of the British TUC. The CWC is an international pension activist organisation (and “think tank”) which brings together trade union pension trustees from all over the world.

UNISON had the largest delegation present. There were also British trade union trustees from Unite and the TUC. Others present were from Canada, Netherlands, France, Spain and Denmark. There is usually a wider international presence but later next month there is a big CWC meeting in Australia.

There was some pretty heavy weight presentations. The meeting kicked off with introduction by Ken Georgetti (President - CLC, Chair CWC) then “The G20 London Summit: Headway on financial market regulation? A trade union perspective” (Pierre Habbard - TUAC); Financial Market Regulation: Opportunities and Challenges (Ieke van den Burg - MEP & APG Trustee) and our Janet Williamson (Senior Policy Officer – TUC); Universal Ownership – Fiduciary policies for a New Era (by our Colin Meech and Ben Rudder - UNISON Capital Stewardship programme); Pension investment policies: Is there a need to change in the light of the new economic reality? (Roderick Munster CIO – ABP/AGP) and How do Pension Funds recover? (Niels Kortlever – PGGM).

I will post another time on the various presentations and panel’s discussions which were all very interesting and thought provoking (I am mind way behind on posting things). But one of the most important issues I thought that we discussed today and last night in our informal dinner (thanks to David Levi from “Growth Works”) was the imperative to have proper independent directors on company boards. Particularly in the financial sector.

If we are really serious about avoiding the disasters of recent times. These directors would be representatives of the real owners (us) and not part of the city mafia. They could have a background in trade unions, works councils, retail, local authorities or consumer protection - whatever. They would ask the common sense “What if “questions that the so-called professionals consistently fail to ask in crisis after crisis after financial crisis. In the UK we have in theory AGM votes on company boards. To make this real, not make believe, require that those who hold shares on behalf of collective investments have to consult the real owners on how to vote? Better regulation is not enough – remember that the best people to look after money – own it.

Just an idea to help our Gordon really save the world.

(the UNISON A team L to R - Peter Gaskin, youknowyou, Phillip Foster, Olga Kokkinnis, Richard Yard - photo taken by UNISON staff trustee Jon Dunn))

Dutch bring home their bacon over Sudan

The giant Dutch pension fund for health and social workers, PGGM (worth 88 billion Euros with 2 million members), has decided to withdraw its investments in Chinese energy company, PetroChina, due to human rights violations by this company in Sudan.

PGGM has tried to “engage” with PetroChina for many years. However, according to PGGM, the parent company, CNPC, is involved in human rights violations in Sudan.... “and as the largest player in the Sudanese oil industry, CNPC is also a major financier of the Sudanese government, which commits human rights violations on a wide scale.” (IPE) This is the first time the fund has “disinvested” due to engagement failure.

I think this is a positive development. While I am a firm believer in engagement and trying to persuade companies to change, at the end of the day, you must be prepared to disinvest if companies continue to ignore their owners concerns.