WASHINGTON (AFX-GEM) - Yum!
Brands Inc. shareholders are asking the global fast-food conglomerate
to report on labor practices up and down its supply chain, a move
they say is designed to improve the wages of workers at a supplier
of tomatoes to Yum's Taco Bell chain.
Tomato
pickers at the supplier--Immokalee, Florida-based Six L's Packing
Co Inc--say their wages have remained at the 1979 level of 7,500
usd per year.
After
trying for years to gain raises and improvements in work conditions,
the tomato pickers' Coalition of Immokalee Workers in April 2001
launched a nationwide boycott of Taco Bell, a major buyer of tomatoes
from Six L's.
Taco
Bell officials have said the company, concerned about its reputation
with consumers, had asked Six L's to settle with the 2,000-plus
workers in early 2002 but was rebuffed. They declined to intervene
further, saying they were not party to the dispute between Six L's
and its employees.
The
largely immigrant workers have asked Taco Bell and other customers
of Six L's to pay one cent more per pound of tomatoes and to insist
that the money be used for pay raises, saying this would effectively
double their wages.
"Their
situation is the primary concern motivating the sponsors,"
said Timothy Smith, director of socially responsive investing at
Walden Asset Management and president of the Social Investment Forum
trade association.
Walden,
a division of US Trust Co, is sponsoring the resolution with the
United Church of Christ Pension Boards, family-run charity the Needmor
Foundation, and the Center for Reflection, Education and Action,
a faith-based advocacy group whose founder, Ruth Rosenbaum, developed
the purchasing power index (PPI), an international measurement of
the purchasing power of wages used by the UN.
Trillium
Asset Management, a Massachusetts-based socially responsible investment
firm, is lead sponsor of the minority shareholders' motion.
The
resolution, submitted last November and to be voted on at Yum! Brands'
annual meeting in May, calls on the Kentucky-based company to report
to shareholders on labor conditions and other issues by October.
"Footwear
and apparel companies accept their responsibility for working conditions
and wages throughout their supply chain. The food service industry
must accept its responsibility for sustainability throughout its
supply chain, including the agricultural workers who pick the many
products that are part of the food sold," the resolution states.
"Just
as these workers, through their labor, contribute to the sustainability
of the company, so must Yum! Brands accept its responsibility for
the working conditions, wages and benefits of these workers,"
it adds.
Trillium
submitted a similar resolution for Yum's 2002 shareholders' meeting
but withdrew it when company executives said they were looking into
the issues.
"They
indicated they were interested in a substantive dialogue about he
farm workers and the boycott and the wider question of supply-chain
responsibility, but it just hasn't worked out," said Shelley
Alpern, assistant vice president at Trillium.
"We're
just not convinced they're taking this seriously," she said,
adding that the company has yet to respond to the resolution.
As
of Monday, officials at Yum!, Taco Bell Corp and Six L's had not
responded to numerous requests for comment since Jan 8.
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