(January 23 – 10:15 ET) – Ethical Funds Inc. has joined forces with Working Enterprises Inc. to file a shareholder resolution with Sears Canada on the issue of workplace conditions and labour rights.

The resolution calls for Sears Canada to include independent monitoring and verification procedures to ensure that suppliers both in Canada and in developing countries are in compliance with internationally agreed upon labour standards.

Along with freedom of association, ‘core’ labour standards include equality of opportunity and treatment, elimination of discrimination, abolition of forced labour, and prohibition of forms of child labour that harm the health, safety or morals of children.

“Ethical Funds had been looking forward to the achievement of industry-wide progress on these issues,” said Robert Walker, vice president, SRI Policy and Research at Ethical Funds. “We feel it’s time to use our full capacity as a shareholder to encourage the companies we hold in our portfolios to address the issue of worker’s rights and to bring supplier factories into compliance with internationally agreed upon labour standards.”

Walker notes that Sears has been a leader on these issues, but hasn’t implemented a verification process. The verification issue has become one of the most significant barriers to adequate code development and implementation in the apparel and footwear sectors.

“Without a credible verification system apparel and footwear retailers will not be able to avoid the controversy that surrounds the practice of sourcing products from developing countries known for the abuse of human and labour rights,” said Walker.

The shareholder resolution at Sears Canada will be voted on at Sears Canada’s annual general meeting to be held in Toronto on April 17. “Ethical Funds looks forward to management’s analysis of this resolution and seeing how Sears Canada responds to our concerns,” said Walker.
-IE Staff