Read the initial assessment issued by the French NCP – 26 April 2017 French | English

Read the statement and detailed report issued by the French NCP – 5 December 2017 French | English

On 15 September 2016, the French NCP received a specific instance (SI) from the North American trade union, Unite Here Local 11 (the submitter) targeting the French bank Natixis and one of its asset managers, Natixis Global Asset Management (NGAM) [collectively “the French group”]. The facts concerned the activities of the American subsidiary of the French group, the real estate management company AEW Capital Management (“AEW”), in relation to a social conflict that started in February 2015 at the Westin Long Beach Hotel (the hotel) in California. The hotel was operated by an American group of the hospitality sector and owned indirectly by an American institutional investor, a Utah pension fund called Utah Retirement System (URS), which was a client of AEW.

The submitter alleged violations of freedom of association, collective bargaining and working hours and questioned whether due diligence was conducted by the French Group toward its subsidiary AEW regarding the social conflict at the hotel.

The SI was declared admissible on 5 October 2016 and the French NCP was designated the lead NCP with the US NCP as the supporting NCP. On 30 January 2017, the initial assessment was finalised, concluding that the SI merited further examination.

From March 2017 to September 2017, the French NCP provided its good offices to the parties. Towards the end of August 2017, the good offices of the NCP had resulted in the sale of the hotel to another American group in the hospitality sector and unionization within the hotel.  Following the good offices by the NCP and the subsequent sale of the hotel, the NCP noted in September 2017 that the French group used its influence and put in place appropriate due diligence measures by engaging with their American subsidiary AEW in order for AEW to integrate the new OECD recommendations for institutional investors published in March 2017 into its activities, and in particular, as part of its management contract concerning the hotel.

On 11 September 2017, the NCP closed the SI and issued a final statement including a detailed analysis of the issues raised, noting the positive outcome of its good offices and recognising an agreement between the parties.