The £40 billion Local Authority Pension Fund Forum has unveiled a new phase in its three year long campaign to raise overseas labour standards in the supply chains of UK retailers. The Forum has analysed the codes of conduct adopted by the nine retail groups in the FTSE100 in order to identify which are the most comprehensive and which are weakest.

The new initiative focuses on the quality and effectiveness of labour codes on such issues as child labour, freedom of association and freedom from forced labour. Writing in the Forum's regular newsletter (copy attached), LAPFF chairman Councillor Bob Sowman chair of the £4 billion West Yorkshire Pension Fund, comments "our survey shows codes are often unsystematic and weak. We will be pressing these major companies to extend coverage and demonstrate effective implementation. This is an important risk management issue".

The two companies with the most comprehensive codes were Safeway and Tesco. All other companies ignore at least one of the 'core' labour standards agreed by the International Labour Organisation (ILO).

The new initiative follows previous Forum activity focused on shops without any form of policy. The four main companies originally identified - Boots, JJB Sports, WH Smith and Signet - have all now adopted an overseas labour standards policy or are about to do so following dialogue and AGM activity by LAPFF over the past eighteen months.

The question of shareholder action on overseas employment standards will also be debated at the LAPFF's annual conference next week in Bolton. Institutional investor speakers will be joined by companies, NGOs and regulators to discuss socially responsible investment issues including climate change, community investment, corporate responsibility, directors' pay and practicalities of shareholder engagement.

Local Authority Pension Fund Forum

Local Authority Pension Fund Forum

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