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Unilever Annual Report and Accounts 2010 59
Report of the Directors Governance
Labour relations
The Committee maintains a watching brief on Unilever’s
relationships with its workforce. In November 2007 a complaint
was brought to Unilever’s attention by the International Union
ofFood, Agricultural, Hotel, Restaurant, Catering, Tobacco and
Allied Workers’ Associations (IUF). The complaint was refuted by
our Indian business, Hindustan Unilever. It alleged that Hindustan
Unilever had conspired to force workers at its Doom Dooma
factory in Assam to join a new trade union as a pre-condition
fortheir continued employment at the factory. If proven this
would have constituted a breach of the freedom of association
provisions of the OECD Guidelines for Multinational Enterprises.
Under the terms of the OECD procedures, the unions referred
their complaint to the OECD’s National Contact Point in the UK
for investigation.
After a series of meetings with the IUF and with the help of
theNational Contact Point’s conciliation service, a methodology
for resolving the issue was agreed with the IUF. This centres on
aprocess for verifying union membership to the satisfaction of
the IUF, the local trade union and the state government labour
department. Hindustan Unilever is seeking to implement this
approach and discussions are ongoing to ensure that all
concerned acknowledge the validity of the process.
Unilever Sustainable Living Plan
The year was a significant one for Unilever: November marked
the launch of an ambitious set of sustainability targets in the
shape of the Unilever Sustainable Living Plan. The Plan aims to
improve sustainability across not only Unilever’s own business
practices, but those of its suppliers and consumers (see pages 20
and 21).
The Committee played an active role in monitoring the
development of the Plan throughout the year. It reviewed some
of the potential risks that could damage the credibility of the Plan,
commented in detail on the ambition of the targets and advised
how they should be communicated. As the Plan is central to
Unilever’s mission, the Committee will continue to monitor its
delivery.
Evaluation of the Committee
The Committee carried out a self-assessment of its performance,
led by the Committee Chairman. Members agreed to adopt a
more forward-looking approach and to review issues according
to strategic business and reputational priorities. The Boards also
evaluated the performance of the Committee.
Sir Malcolm Rifkind
Chairman of the Corporate Responsibility
andReputationCommittee
Louise Fresco
Hixonia Nyasulu