Institutional Shareholder Services endorsed a shareholder proposal at Unocal Corp. asking the company to adopt and implement employee standards based on principles of the International Labor Organization. The proposal is sponsored by the Amalgamated Banks $5 billion LongView Collective Investment Fund and two other groups; Longview owns about 80,000 shares of Unocal.
Unocal does business in nine countries, including Myanmar, Brazil, China, the Philippines and Vietnam, "where systematic violations of human rights occur, ISS said in an analysis. Unocal opposes the proposal, saying it adheres to a strict company code of conduct and the Global Sullivan Principles of Social Responsibility to promote human and employee rights. A similar labor proposal got 23% of the shareholder vote last year.
Separately, ISS opposes another shareholder proposal calling for Unocal to link executive compensation to social issues, noting the companys compensation committee comprises independent directors who have to follow a code of conduct in setting executive pay.
Unocals shareholder meeting is May 20.