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The
$230 billion Norwegian Government Pension Fund-one of the largest
pension funds in the world-has divested of Wal-Mart, citing human
rights and labour rights violations. In making this decision,
the Norwegian government cited anti-unionization efforts around the
world, including Canada.
In
a statement June 6, the Norwegian government said it had also
decided to divest from mining company Freeport-McMoRan Copper &
Gold for environmental reasons.
The
government based the exclusions on the recommendations of the fund's
ethical council. Under Norwegian government rules, the
government will order a divestment of companies if it concurs with
recommendations from the fund's Council on Ethics that such
companies represent serious, systematic or gross violations of
ethical norms.
While
the Norwegian Government Pension Fund is unusual among pension funds
in having a set of clear ethical guidelines, the decision shows that
pension funds are beginning to exercise their responsible investment
authority in a more rigorous manner.
"The
recommendation to exclude Wal-Mart cites serious/systematic
violations of human rights and labor rights," the Finance
Ministry said in a statement. "The recommendation to exclude
Freeport is based on serious environmental damage."
It
said the council found "an extensive body of material"
that indicated Wal-Mart had broken norms, including employing minors
against international rules, dangerous working conditions at many of
its suppliers and blocking workers' efforts to form unions.
In
February 2005, Wal-Mart announced that it was closing its store in
the small Quebec town of Jonquiere, just six months after the United
Food and Commercial Workers (UFCW) union of Canada had won the legal
right to represent its 190 employees.
In making the announcement, Wal-Mart said the
store was closing because it was unprofitable.
More
recently, the company has opposed unionization efforts in British
Columbia and at another store in St. Hyacinthe, Quebec.
In support of its contention that
Wal-Mart actively obstructs employees in their right to unionize,
the Norwegian Government Pension Fund ethics council said that
several of Wal-Mart’s internal company documents, including a book
entitled “Wal-Mart: A
Manager’s Tool Box to Remaining Union Free,” have been
the issue of a ruling by Canada’s Supreme Court, in which the
court ordered the company to surrender the book to labour
authorities in Saskatchewan.
In divesting from Wal-Mart, the Fund
said that prior to the divestment, it had held about NOK 2.5 billion
($450 million CAD) in Wal-Mart stock.
For more information, visit the
Norwegian Ministry of Finance news release at http://odin.dep.no/fin/english/news/news/006071-990626/dok-bn.html.
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