U.S. union wants retailers to review wages paid by vendors in ‘human capital’ trend -Breaking
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© Reuters. By Ross Kerber
(Reuters) – The Teamsters union is asking four major U.S. retailers for assistance in investigating if their suppliers are paying workers too little. They hope that the retailers will leverage their relationships with vendors and help them achieve better protection.
The union submitted resolutions to shareholders meetings at Lowe’s Companies this spring (NYSE:). Best Buy According to documents seen by Reuters and union officials, Urban Outfitters Inc. is (NASDAQ:), TJX Companies(NYSE:), and Co (NYSE:). Public filings only one have revealed the identity of Lowe’s.
These resolutions are part of a series that will make HCM (human capital management) a key topic at the spring shareholder meetings. Both traditional human resources issues such as recruitment and skills development have been covered. However, the term also covers more general topics like workforce diversity (and pay) that are being impacted by an increasing global attention to inequality caused by the COVID pandemic.
Companies also have to deal with workers shortages, which has contributed to higher prices and empty shelves.
The union doesn’t represent the workers of retailers. It does, however, represent some workers at logistics companies and hopes it will represent even more.
According to the Teamsters, retailers likely used logistic companies that were facing legal problems from drivers because of their labor practices at Southern California ports.
According to legal filings, October saw a $30 million settlement by a logistics company. This was to address allegations that driver’s were not paid minimum wages.
The Teamsters warns that retailers who rely on partners with poor work conditions may be exposed to public criticism and even legal liability in California.
Michael Pryce Jones-Jones is a senior governance analyst for Teamsters. He stated that subcontractors could be used to “destroy what investors are looking for in HCM”.
The logistics arrangements of retailers are not discussed in depth by any retailer.
Lowe’s asked the securities regulators Jan. 24, for permission to abstain from a vote regarding Teamsters’ proposals. Lowe’s argued that the proposal falls within an exemption for “ordinary businesses.”
Reps from Urban Outfitters, Best Buy, and Lowe’s did not respond when asked.
TJX declined to comment but a spokeswoman said that TJX expects service providers to adhere to applicable laws and regulations.
GROWING NOTICE
Heidi Welsh, the executive director at the Sustainable Investments Institute which monitors shareholder proposals said that filers are on track to surpass the record of 115 HCM submissions for U.S. company meeting in 2021.
She said that the Teamsters resolutions could be successful if they are based on votes from last year regarding resolutions on working conditions. These resolutions won an average of 52% support. Welsh warned that the SEC would not allow this vote. SEC did not comment.
Over the next few months, SEC could also propose changes to HCM disclosure rules. Teamsters and other unions urged the SEC to require that employers disclose details regarding employees, such as drivers or contractors who may not be on their payrolls but are still relevant to investors.
The U.S. Chamber of Commerce is a prominent trade organization. Tom Quaadman stated that it prefers the SEC to stick to 2020 rules set up when the Commission was under the control of appointees of President Donald Trump.
They encouraged businesses to disclose their human capital to “the extent such disclosures could be useful to understanding” a company’s business. A simpler standard was used.
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