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FTSE Group has resisted a call for a US meat products manufacturer to be thrown off the FTSE4Good Index for alleged antipathy to trade unions.
Human Rights Watch had urged FTSE to exclude Smithfield Foods, which makes pork, beef and turkey products for the US market, due to its ‘egregious workers’ rights record’, which has led to legal tussles in the US.
The United States Court of Appeals for the District of Columbia Circuit, in a May 2006 decision, concluded that Smithfield was ‘exceptionally hostile to union organizing activities’ at its Tar Heel plant, and had threatened to discipline staff who engaged in union activity.
The National Labor Relations Board, an independent agency created by Congress to administer the National Labor Relations Act, announced earlier this year that it was looking into allegations of threats to workers at Tar Heel.
Human Rights Watch said it was ‘deeply concerned that the company’s continued inclusion in FTSE4Good misleads individuals and institutions seeking to invest in responsible companies ’. It argued that this undermined FTSE4Good’s credibility.
However, Mark Makepeace, chief executive of FTSE Group, said Smithfield had retained its place in the index, which underwent its semi-annual review last month, because it was making efforts to improve. FTSE had convened a subcommittee to look into Human Rights Watch’s concerns and had ‘engaged directly’ with the company on the question of workplace rights, Makepeace said.
Smithfield introduced a human rights policy in July this year, which according to FTSE has led to changes to their management procedures. Makepeace added: ‘We find it more useful for a company to make changes in their management systems and policies and meet the criteria, rather than delete them and lose the opportunity to promote best practice.’ Following the review last month 24 companies were removed from the index series and 42 added.
Human Rights Watch had urged FTSE to exclude Smithfield Foods, which makes pork, beef and turkey products for the US market, due to its ‘egregious workers’ rights record’, which has led to legal tussles in the US.
The United States Court of Appeals for the District of Columbia Circuit, in a May 2006 decision, concluded that Smithfield was ‘exceptionally hostile to union organizing activities’ at its Tar Heel plant, and had threatened to discipline staff who engaged in union activity.
The National Labor Relations Board, an independent agency created by Congress to administer the National Labor Relations Act, announced earlier this year that it was looking into allegations of threats to workers at Tar Heel.
Human Rights Watch said it was ‘deeply concerned that the company’s continued inclusion in FTSE4Good misleads individuals and institutions seeking to invest in responsible companies ’. It argued that this undermined FTSE4Good’s credibility.
However, Mark Makepeace, chief executive of FTSE Group, said Smithfield had retained its place in the index, which underwent its semi-annual review last month, because it was making efforts to improve. FTSE had convened a subcommittee to look into Human Rights Watch’s concerns and had ‘engaged directly’ with the company on the question of workplace rights, Makepeace said.
Smithfield introduced a human rights policy in July this year, which according to FTSE has led to changes to their management procedures. Makepeace added: ‘We find it more useful for a company to make changes in their management systems and policies and meet the criteria, rather than delete them and lose the opportunity to promote best practice.’ Following the review last month 24 companies were removed from the index series and 42 added.
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