"Giant Norwegian Government Pension Fund drops Wal-Mart, cites US and Canadian
anti-union activity among other human rights and labour violatio[ns]

The $230 billion Norwegian Government Pension Fund-one of the largest pension funds in the world-has divested of Wal-Mart, citing human rights and labour rights violations. In making this decision, the Norwegian government cited anti-unionization efforts around the world, including Canada.

In a statement June 6, the Norwegian government said it had also decided to divest from mining company Freeport-McMoRan Copper & Gold for environmental reasons.

The government based the exclusions on the recommendations of the fund's ethical council. Under Norwegian government rules, the government will order a divestment of companies if it concurs with recommendations from the fund's Council on Ethics that such companies represent serious, systematic or gross violations of ethical norms.

While the Norwegian Government Pension Fund is unusual among pension funds in having a set of clear ethical guidelines, the decision shows that pension funds are beginning to exercise their responsible investment authority in a more rigorous manner.

"The recommendation to exclude Wal-Mart cites serious/systematic violations of human rights and labor rights," the Finance Ministry said in a statement. "The recommendation to exclude Freeport is based on serious environmental damage."

It said the council found "an extensive body of material" that indicated Wal-Mart had broken norms, including employing minors against international rules, dangerous working conditions at many of its suppliers and blocking workers' efforts to form unions.

In February 2005, Wal-Mart announced that it was closing its store in the small Quebec town of Jonquiere, just six months after the United Food and Commercial Workers (UFCW) union of Canada had won the legal right to represent its 190 employees.

In making the announcement, Wal-Mart said the store was closing because it was unprofitable.   More recently, the company has opposed unionization efforts in British Columbia and at another store in St. Hyacinthe, Quebec.

In support of its contention that Wal-Mart actively obstructs employees in their right to unionize, the Norwegian Government Pension Fund ethics council said that several of Wal-Mart's internal company documents, including a book entitled "Wal-Mart: A Manager's Tool Box to Remaining Union Free," have been the issue of a ruling by Canada's Supreme Court, in which the court ordered the company to surrender the book to labour authorities in Saskatchewan.

In divesting from Wal-Mart, the Fund said that prior to the divestment, it had held about NOK 2.5 billion ($450 million CAD) in Wal-Mart stock."

http://www.socialinvestment.ca/News&Archives/news-0606-NorwegianPension.htm