Hudson's Bay resolution sets new record for shareholder support

A proposal calling on Hudson's Bay Co. (HBC) to end sweatshop abuses received 36 per cent of the shares voted, setting a new record for investor support on a social shareholder resolution.

The resolution, sponsored by four institutional investors, called on the HBC Board to adhere to the International Labour Organization declaration of principles and to issue an annual compliance report.

The proposal received 36.8 per cent of the voted shares at HBC's annual meeting May 22.  This is the largest vote in favor of a social or environmental shareholder proposal at a Canadian corporation. The last largest vote -- on a proposal calling for an audit of Talisman Energy's Sudan operations -- received 27 per cent of the shares cast at the company's annual meeting in 2000.

"This is a very strong vote, demonstrating broad concern among investors about the need for greater disclosure," said Peter Chapman, executive director of the Shareholder Association for Research and Education (SHARE). "It is also a shot across the bow of other Canadian retailers who may feel complacent because similar problems have not been brought to light in their supply chains."

Anti-sweatshop organizations, led by the Ethical Trading Action Group and the Maquila Solidarity Network, have raised concerns about working conditions at the Sun Textiles plant in Lesotho, Africa. The plant makes garments for the Zellers chain in Canada (owned by HBC) and other retailers. After reports of abuse surfaced following submissions made by Sun employees, HBC indicated that it may discontinue buying from Sun Textiles. This prompted accusations that HBC was simply planning to "cut and run" from its ethical obligations.

"It is not good enough just to tell shareholders everything is all right, especially amidst recent credible allegations that everything is not in fact all right," said Sylvia Sioufi, a trustee of the CUPE Employees pension Plan. "Shareholders demand more of their companies in 2002."

For more information, visit SHARE and Maquila Solidarity Network

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