Read the final statement issued by the Australian NCP – June 2017

On 20 November 2013, IndustriALL Global Union on behalf of the Free Trade Zones and General Services Employee Union (FTZGSEU) of Sri Lanka and the National Union of Employees in Companies Manufacturing Rubber Products (NUECMRP) of Malaysia, submitted a specific instance to the Australian National Contact Point (ANCP) alleging non-observance of the OECD Guidelines by Ansell Limited and its subsidiaries operating in Sri Lanka (Ansell Lanka PVT Ltd) and Malaysia (Ansell Shah Alam SDN BHD).

IndustriALL alleged that some Ansell employees may have suffered significant health issues as a direct result of workplace contaminants and that Ansell has acted inappropriately in relation to its handling of deteriorating working conditions. Ansell denied these allegations. Other allegations included: adverse impacts on employee health and safety; inappropriate conduct in terminating Sri Lankan employees after they engaged in strike action; a lack of engagement with government and union conciliators in Sri Lanka and Malaysia; and the resulting impact on the local community.

Parallel proceedings and four mediation meetings took place between August 2014 and November 2015, with final negotiations made over the course of 2016. A memorandum of understanding (MOU) regarding terms for rehiring employees and expectations of professional business conduct between both parties going forward was signed on 15 August 2016 by both parties, agreeing that matters were satisfactorily resolved.

The NCP closed the specific instance in June 2017 and subsequently published this final statement.

The statement recommends that all parties continue their ongoing dialogue and conduct future business activity within the terms agreed in the memorandum of understanding and the standards articulated in the Guidelines. It also suggests all parties promote the Guidelines to employees and members to ensure greater awareness of current international standards relating to responsible business conduct.

On 22 August 2019, the Australian NCP published a follow-up statement in which it reported that IndustriALL had requested the Australian NCP to follow-up on the specific instance, as it alleged that Ansell had not implemented the MOU in good faith. The Australian NCP offered to assist the parties with their discussion, which both parties declined.  As communications have recommenced between the parties, the Australian NCP will not continue to involve itself.