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A complaint accusing the Indian Unilever subsidiary of labour rights violations has been made to the Organization for Economic Co-operation and Development.
Hindustan Lever is said to have repeatedly violated the letter and spirit of the OECD employment guidelines by ignoring the obligation to engage in collective bargaining with trade unions. Part of the complaint accuses Hindustan Lever of trying to transfer ownership of its Mumbai factory solely to escape its duties as an employer. The intention, says the complaint, was to close the factory and terminate union members’ employment.
The complaint has been filed by the International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers’ Associations.
Hindustan Lever has already been found guilty of unfair labour practices by several Indian courts, including the Supreme Court. At present four executives of the company are facing criminal charges of failing to rectify illegal practices.
The complaint arose after Hindustan Lever transferred ownership of the Mumbai factory last year to a company called Bon Ltd – which was represented in the deal by two Hindustan Lever employees. For the purchase Hindustan Lever loaned $2.17million (£1.15m) to Bon. At the time, Bon’s capitalization was $10,800. Bon told all employees the factory was closing and offered them ‘voluntary’ retirement.
The union’s OECD action is intended to force Hindustan Lever to engage in negotiations over the proposed closure.
Hindustan Lever is said to have repeatedly violated the letter and spirit of the OECD employment guidelines by ignoring the obligation to engage in collective bargaining with trade unions. Part of the complaint accuses Hindustan Lever of trying to transfer ownership of its Mumbai factory solely to escape its duties as an employer. The intention, says the complaint, was to close the factory and terminate union members’ employment.
The complaint has been filed by the International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers’ Associations.
Hindustan Lever has already been found guilty of unfair labour practices by several Indian courts, including the Supreme Court. At present four executives of the company are facing criminal charges of failing to rectify illegal practices.
The complaint arose after Hindustan Lever transferred ownership of the Mumbai factory last year to a company called Bon Ltd – which was represented in the deal by two Hindustan Lever employees. For the purchase Hindustan Lever loaned $2.17million (£1.15m) to Bon. At the time, Bon’s capitalization was $10,800. Bon told all employees the factory was closing and offered them ‘voluntary’ retirement.
The union’s OECD action is intended to force Hindustan Lever to engage in negotiations over the proposed closure.
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