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Shareholders aim at Sears Canada and Hudson's Bay on sweatshop issues
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Working Enterprises Ltd., United Investment Counsel and Real Assets Investment Management have submitted shareholder proposals with Sears Canada and Hudson’s Bay Co. on sweatshop issues. The resolutions will be on the agenda of the Sears annual meeting April 15 and the Hudson’s Bay annual meeting May 22. It is the second year in a row that sweatshops and child labour issues will be on the ballot at the companies. The proposals ask the companies to improve their policies on labour standards, to implement monitoring practices and to provide shareholders with an independently verified compliance report. The resolutions are similar to proposals at more than a dozen retail companies filed by institutional investors across North America. According to a shareholder alert issued by the Shareholder Association for Research and Education (SHARE), the sweatshop and child labour issue constitutes “a significant risk to brand reputation.” SHARE cites recent Canadian polling data suggesting that shoppers avoid stores believed to sell sweatshop or by child labour apparel. SHARE also said such practices expose companies to litigation, citing the recent out-of-court settlement reached at Sears Roebuck concerning illegal labour conditions in Saipan. “Neither company discloses information to shareholders about the scope or effectiveness of its monitoring process,” states the SHARE alert. “Allegations brought by non-governmental organizations call the companies’ claims into question, leaving shareholders without sufficient information to determine their exposure to the risks associated with sweatshop and child labour conditions.” For more information, visit SHARE
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