Michelin Group, and four NGOs and a trade union
Lead NCPFrance
Supporting NCP(s)None Selected
DescriptionSpecific instance notified by a trade union and four NGOs regarding the activities of Michelin Group, a French multinational enterprise operating in India.
Theme(s)Combating bribery, bribe solicitation and extortion, Disclosure, Employment and industrial relations, Environment, General policies, Human rights
Date10 Jul 2012
Host country(ies)India
SourceNGO, Trade Union
Industry sectorManufacturing
StatusConcluded
Summary

Read the final statement issued by the French NCP concluding the specific instance - 27 September 2013 | français

Read the statement issued by the French NCP - 7 October 2013  | français

Read the follow-up statement issued by the French NCP - 14 May 2014 | français

Read the second follow-up statement issued by the French NCP - 29 February 2016 | français


In July 2012, the French NCP received a request for review from four NGOs, the Tamil Nadu Land Rights Federation (India), the Association of Villagers of Thervoy, SANGAM (Thervoy Grama Makkal Nala Sanga, India), the NGO CCFD-Terre Solidaire (France), the Association SHERPA (France) and the trade union Confederation Générale du Travail (CGT France) alleging that Michelin Group, a French multinational enterprise, had breached the general policies, disclosure, human rights, employment and industrial relations, environment, and combating bribery provisions of the Guidelines in India by constructing a tire manufacturing plant on recently industrialized pasture land which had negative effects on local populations.


During 2012 and 2013, the NCP offered its good offices to the parties. During this time, the NCP noted persistent differences between the parties which impeded its mediation efforts. In July 2013, the NCP completed its analysis of the specific instance and the draft commmuniqué to the parties for comment. At the end of this consultation in September 2013, the company accepted the NCP’s decisions and committed to co-operate with it. The complainants however publicly announced the withdrawal of their specific instance and criticised the work of the NCP on several occasions during 2013 and 2014. In this context, the NCP first issued a Communiqué on 24 September 2013 to announce that it would still publish its decision. The NCP’s report was published on 27 September 2013. On 7 October 2013, the NCP also issued a statement in response to the criticism by the NGOs' and trade union's criticisms.

The NCP Communiqué of 27 September 2013 contains an in-depth analysis of the company’s behavior in relation to the Guidelines, a determination on conformity with the Guidelines and a set of four recommendations for the company. The NCP noted that the Michelin Group did not violate the OECD Guidelines, although several recommendations of the OECD Guidelines were not adequately complied with or not fully implemented. The NCP regretted that an impact study could not be conducted earlier. This was due to the parties' failure to come to an agreement since 2010 on the terms of reference and the implementation conditions. The NCP noted that, as a result of its good offices, the Michelin Group has undertaken preparatory steps for environmental, social and human rights impact assessment studies study for the industrial project in Tamil Nadu (India). The Michelin Group also committed to developing a subsequent action plan to adapt its CSR policy and internal due diligence systems in response to the outcomes of the studies. The NCP appreciated the Michelin Group's cooperation, the level of transparency it provided and its renewed willingness to dialogue with the NCP. Furthermore, the NCP requested that the Michelin Group take into account its recommendations in order to ensure compliance with the Guidelines, first in the start-up phase of the production on the site, as well as in the development of the industrial project. The NCP decided to follow up on its recommendations.

Since the end of 2013, the Michelin Group has sent regular updates to the NCP on the actions it has taken regarding the NCP's recommendations, and also consulted with the NCP on certain matters. Several meetings have taken place between the NCP and the enterprise. The NCP adopted an initial follow-up statement in May 2014. This was published after consultation with the company. It reports on the measures taken by the Michelin Group, notably the launch of the impact assessment studies and the actions taken to strengthen dialogue with its stakeholders at the group’s level. The NCP released a second and final follow-up statement in February 2016 published after consultation with the Michelin Group. After three years of proceedings, the NCP congratulates the Michelin Group for having integrated due diligence into its policy and strategy not only in Tamil Nadu but also globally. It also notes that the Michelin group has developed an innovative standard in the natural rubber sector. This second follow-up statement comprises an Annex detailing the measures taken by the Michelin Group to implement the set of four recommendations issued in September 2013 for its plant in India.


The second follow-up statement marks the end of the NCP’s follow-up on this specific instance.