Burma
Background
Foreign companies play a pivotal role in maintaining a steady flow of capital to the Burmese military dictatorship, and by extension, in upholding military rule and brutal repression in the country. Burma has been condemned internationally for its use of slave labour, forced displacement, and repression of ethnic minorities. Consequently, companies with ties to Burma face significant financial, reputational and legal risks.
Investor Risks
With an unstable regulatory framework, endemic corruption and gross violations of human rights, the country is subject to increasingly stringent international sanctions and heightened public and media scrutiny. Trustees, pension activists, and all concerned investors should consider the risk this may pose to the companies in their investment portfolio.
Campaign Milestones
CWC members have played an active role in drawing attention to the social and financial risks associated with investing workers’ capital in Burma.
2007
- SHARE issues a Portfolio Watch Alert regarding Canadian companies with ties to Burma [CHC Helicopters, Ivanhoe (Rio Tinto), Chevron and Total].
- The Canadian Labour Congress lobbies the Canada Pension Plan’s Investment Board and calls on the Canadian Prime Minister to ban on Canadian investments in Burma. This may have contributed to the toughened sanction regime announced by the Canadian government in November 2007.
- Swedish investors requested active engagement services, while the Dutch healthcare sector fund PGGM announces active engagement with about a dozen companies operating in Burma.
- The Danish fund ATP announces divestment from TOTAL and all oil and gas companies dealing directly with the Burmese regime’s Myanmar Oil company.
2008
- In the USA, The Teamsters General Fund, Clean Yield Asset Management, RBC Wealth Management and the United Steelworkers formed a shareholder coalition to request Chevron’s Board to review and develop guidelines for country selection and report these guidelines to shareholders and employees by October 2008. Through its equity in the Yadana gas-field and pipeline, Chevron provides financial support to the Burmese military regime.
- Qubec’s Batirente co-files a shareholder resolution with Power Corp (who owns a percentage of Total) requesting the company to report on the implications of its investment in Burma. The resolution obtains 10% support.
2009
- An amended version of the 2008 US Shareholder proposal to Chevron, calling on the company to disclose the criteria it uses to start and end investments in high-risk countries receives support from more than 25 percent of the shares cast at the company’s annual meeting.
- The Australian Council of Trade Unions names and shames Australian companies operating in Burma and actively calls for the withdrawal of business interests from Burma.
- Batirente re-files the resolution with Power Corp, this time obtaining 14% support. Approximately 70% of Power Corp shares are owned by board members, the non-board vote was 47.3%.
The CWC Secretariat continues to monitor shareholder engagement and action with regard to companies operating in Burma. In 2010, the CWC will act as a coordination point between the global trade union movement, shareholder activists and other civil society actors seeking commitments on revenue transparency from companies operating in Burma.
Briefings and Reports
- CWC Burma Investor factsheet (English; French; Spanish)
- ITUC report Rich Pickings: how trade and investment keeps the Burmese junta alive and kicking (April 2008)
- ATUC Don’t deal with Burma briefing
- BCUK's report on insurance companies and Burma, Insuring Repression (2008)