| International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers’ Associations (IUF) & Fidelity Management & Research Company LLC (Fidelity) | |
|---|---|
| Lead NCP | United States |
| Supporting NCP(s) | |
| Description | Specific instance alleging a non-observance of the OECD MNE Guidelines. |
| Theme(s) | General policies, Human rights, Employment and industrial relations |
| Date | 5 May 2023 |
| Host country(ies) | Cambodia |
| Source | Trade Union |
| Industry sector | Financial and insurance activities |
| Status | Concluded |
| Summary | Read the Final Statement published 1 July 2024: English On 5 May 2023, the US NCP received a specific instance from International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers’ Associations (IUF) alleging that Fidelity Management & Research Company LLC (Fidelity), a US-headquartered financial services company, had not observed the General Policies (Chapter II), Human Rights (Chapter IV), and Employment and Industrial Relations (Chapter V) provisions of the Guidelines. Specifically, issues related to extreme anti-union actions, including acts of violence and the detention of striking union members, by NagaCorp,a Cayman Islands company in which Fidelity-managed funds hold bonds, and government authorities at NagaWorld, an entertainment complex in Cambodia operated by NagaCorp. Allegations against Fidelity relate to a lack of human rights due diligence and leverage in its business relationship with NagaCorp. A similar specific instance was submitted to the Swiss NCP involving a Swiss banking group. On 11 December 2023, the NCP completed its initial assessment deciding to accept the specific instance for further examination. The NCP made an offer of mediation, which the company declined. On 1 July 2024, the NCP published a final statement concluding the specific instance without agreement between parties. The NCP recommended that the company conduct a review to determine if its actions are consistent with related recommendations in the Guidelines (e.g. on risk-based due diligence, to prevent or mitigate adverse impact, encourage business relationships to apply principles of RBC, engage meaningfully with stakeholders), and if it not, modify its practices to do so. The NCP additionally recommended the company to take into account the OECD guidance for institutional investors. The NCP has not noted plans for follow up. #directlylinked #duediligence #civilandpoliticalrights #labourrights #reprisals #FACB #labourconditions #hospitality #investmentbanking #embassynetwork #fortune500 |
