Unite warns M&S of significant reputational
risk
20 May 2008
On the day M&S announce £1 billion in profit, Unite,
Britain's biggest union, warns that it faces significant
reputational risks as it continues to fail to address, what the
union believes, is a pattern of structural discrimination in its UK
and Irish supply chain.
The union intends to table a resolution at M&S's forthcoming
AGM, calling on M&S to engage in a meaningful process involving
all affected stakeholders to deliver equal treatment to all workers
in the British and Irish supply chain.
The union also has concerns over the governance of M&S, as
it believes the concentration of power within the hands of Sir
Stuart Rose as chairman and CEO fails to conform to best practice,
and may leave the company without adequate checks on Sir Stuart's
influence. The union has already held meetings with other investors
that share concerns about the company’s corporate governance and
ethical standards”
Whilst M&S trumpets its commitment to sustainable and
responsible investment, Unite has received complaints from
employees of discrimination in the meat supply chain. A permanent
two tier workforce amongst many suppliers has been created, which
often leads to conflict between migrant and indigenous workers and
causes community disharmony.
Unite joint general secretary, Tony Woodley says, "M&S have
made enormous profits, while we have had complaints from some
workers in its supply chain who feel they are being forced to
accept unequal treatment and discrimination. Sir Stuart Rose now
faces the likelihood of a resolution being brought to the floor of
M&S's forthcoming AGM which calls on the company to protect its
brand by remedying the situation.
“Our belief is that there is a structural pattern of
discrimination in the M&S supply chain and this is not only
ethically wrong but also presents a significant reputational risk
to the brand of M&S.
“We have raised this issue time and time again with M&S but
they are failing to take effective action. We are calling for an
urgent meeting with Sir Stuart Rose to discuss the union's
concerns. Unless this issue is addressed it could to do significant
damage to the company’s reputation with both investors and
customers."
Unite the union, gave its evidence to M&S and the other
major retailers more than a year ago. Despite talks and independent
research which backed many of the workers’ claims, M&S has
failed to take effective action. Unite believes supermarkets should
face up to their responsibilities to workers and communities.
M&S should put its warm words into action, and start putting
people first.
ENDS
Contact: Ciaran Naidoo 07768 931 315
