NYC Comptroller Lander, NYS Comptroller DiNapoli, Trillium Asset Management, PIRC, SOC Investment Group Release “Guiding Principles of Collective Bargaining – An Investor Perspective”
New York, NY— Today New York City Comptroller Brad Lander, New York State Comptroller Thomas P. DiNapoli (Trustee of the New York State Common Retirement Fund), Trillium Asset Management, SOC Investment Group (SOC), and Pensions & Investment Research Consultants Ltd. (PIRC) released a set of guiding principles on investor engagement with companies regarding labor relations.
The “Guiding Principles of Collective Bargaining — An Investor Perspective” outline these institutional investors’ views on the fundamental right of collective bargaining, its importance in sustaining long-term shareholder value, and their expectation that the collective bargaining process be based on the genuine goal of reaching mutually acceptable agreements expeditiously.
“The abilities to exercise fundamental rights of freedom of association and collective bargaining are interdependent: if companies don’t uphold both, then neither is meaningful,” said Comptroller Lander. “Workers should be able to freely decide whether to join a union, and when they do, it’s imperative that companies move forward with a collective bargaining process that genuinely aims to promptly reach agreements. The collective bargaining principles released today can help investors better engage with companies on human capital management practices and positive labor relations, which will support long-term company success.”
“Respecting workers’ rights to freely associate and bargain collectively is a cornerstone of responsible workforce management,” said Comptroller DiNapoli. “As long-term investors, we’ve seen that companies benefit when they engage constructively with their employees and proactively address potential labor risks. These principles will assist our stewardship work as we look to protect the long-term value of our portfolio companies.”
“We have seen the importance of labor relations time and time again, from how good faith relationships can drive value and employee satisfaction to how adversarial ones damages morale, culture, and reputation,” said Jonas Kron, Chief Advocacy Officer of Trillium Asset Management. “These principles reflect an investor perspective on understanding a better way forward for companies with new or existing unions. We believe that respecting workers’ rights is a key differentiator that can generate both financial and social benefits and we hope to see more companies center human rights in their labor relations.”
“It’s in everyone’s best interests that companies work collaboratively with their employees and that extends to collective bargaining,” said Conor Constable, Head of Stewardship for PIRC. “It’s not for investors to determine the bargaining process but they do have an interest in it proceeding in a fair and timely way. These principles provide a framework for achieving that aim.”
“Shareholders’ understand that respect for workers’ fundamental rights can positively impact the long-term value and sustainability of companies,” said Tejal Patel, Executive Director of SOC Investment Group. “The principles give investors an important frame of reference for their engagements with companies regarding workforce-related opportunities and risks.”
The principles highlight the “enabling rights” of freedom of association and collective bargaining, as recognized by the International Labour Organization (ILO), including in its Declaration on Fundamental Principles and Rights at Work, which considers them essential to protecting other basic rights within the workplace. The United Nations (UN) Guiding Principles on Business and Human Rights (UNGP), Organization for Economic Co-operation and Development Guidelines for Multinational Enterprises on Responsible Business Conduct, and the principles governing the UN Global Compact also call for companies to respect these rights.
The principles reflect the views of the above-listed organizations that sound labor practices protect the long-term value of their portfolio companies. These principles are not prescriptive and do not call for specific actions but rather aim to provide a framework for dialogue.
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