LIU, PENSION FUNDS DEMAND TECH GIANTS HOLD SUPPLIERS RESPONSIBLE

 

LIU, PENSION FUNDS DEMAND TECH GIANTS HOLD SUPPLIERS RESPONSIBLE
Unprecedented shareholder proposal has already increased transparency of global suppliers to consumer products from iPhones to Xboxes
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  Comptroller John C. Liu and the New York City Pension Funds called on Dell, Intel, and Motorola to follow the example set by other tech giants who have adopted their shareholder effort to increase their suppliers’ compliance with internationally-recognized standards of human and worker rights.   Apple, Hewlett Packard, and Microsoft all recently adopted new policies after discussions with the Comptroller’s office and the Pension Funds.

Reports last year of a rash of suicides at Foxconn, the world’s largest electronics contract manufacturer and a major supplier to Apple and other companies, focused the Comptroller’s attention on technology companies in which the Pension Funds are invested.  The technology firms that rely on Foxconn and other global suppliers have increasingly been made aware that responsible business practices are
vital to their future success.  Although some companies have internal “codes of conduct” for their suppliers, it is clear that this is not sufficient and has not curbed abuses.

“Violations of human and workers’ rights, even if by their suppliers, pose operational and reputational risks that these companies cannot ignore,” Comptroller Liu said.  “As long term investors we must be concerned about financial risk as well as alignment with basic values.  We have a responsibility to ensure that the profits and products that result from free trade are not created by the exploitation of workers in sweat shops, child labor, indentured slavery or other violations of human rights.”

The Comptroller’s office has engaged in a dialogue with many of the companies starting late last year when it began submitting the proposal to them.  The proposal was subsequently withdrawn from Apple, Hewlett Packard and Microsoft after they agreed to launch new programs under which key portions of their supply chain would begin publishing annual sustainability reports.

The proposal will be subject to a shareholder vote at the annual meetings of Dell, Intel, and Motorola this spring if those companies do not agree to adopt the request.  The Comptroller’s office expects to file the proposal at additional companies in the coming months.

“Microsoft, Apple, and Hewlett Packard have taken concrete steps to uphold international standards of workplace safety and human rights in their supply chains,” Comptroller Liu said.  “They have set an example
that we expect other companies will follow as we expand this effort.”

Background
Companies’ supply chains are the area of their operations that are most vulnerable to labor, human rights and environmental abuses, creating both reputational and operating risks.  Current best practice is to conduct independent supplier audits, but audits alone have proven insufficient.   Therefore, increasing daylight on tech
suppliers is not only a global moral imperative but the basis of sound
business.

The proposal calls on the companies to have their suppliers track workplace safety and human and worker rights based on international standards.  The suppliers should then publish their findings in independently verifiable reports.  The proposal asked that the companies use the internationally recognized Sustainability Reporting Guidelines of the Global Reporting Initiative (GRI).

Companies That Have Adopted Shareholder Proposal
Apple
As a result of extended discussions with the Comptroller’s office, Apple agreed to increase the transparency of its suppliers on December 19.  This year Apple will require 90% of the companies it hires for final assembly of its products to publish annual sustainability reports based on the internationally recognized standards set out by the GRI.  The reports will describe the suppliers’ ability to comply with international standards of human and workers’ rights.  As a result of Apple’s changes, the shareholder proposal was withdrawn.

Hewlett Packard
On November 14, Hewlett Packard agreed to “encourage” its suppliers to demonstrate “continual improvement” by publishing annual sustainability reports based on GRI standards.  HP stated that it would show preference to suppliers that “meet or exceed” its expectations.  As a result the shareholder proposal was withdrawn.

Microsoft
Following discussions with the Comptroller’s office, Microsoft announced on October 13, 2011 that it would require its key hardware suppliers — including all suppliers for the Xbox — to prepare annual sustainability reports.   In addition, starting in 2013, Microsoft will require a cross section of its suppliers to provide reports on their adherence to the requirements listed in the existing Microsoft Vendor Code of Conduct. The code of conduct sets standards for legal compliance, business ethics, labor and human rights standards, environmental protection, and respect for intellectual property.  As a result, the Pension Funds withdrew the shareholder proposal.

The New York City Comptroller serves as the investment advisor to, custodian and trustee of the New York City Pension Funds. The New York City Pension Funds are composed of the New York City Employees’
Retirement System, Teachers’ Retirement System, New York City Police Pension Fund, New York City Fire Department Pension Fund and the Board of Education Retirement System. The New York City Pension Funds as of 2/6/2012 held a combined 46,272,577 shares at the six firms valued at $2,299,946,740.50, which includes 2,326,561 shares of Apple (NASDAQ: AAPL) valued at $1,079,454,507; 5,019,990 shares of Dell (NASDAQ: DELL) valued at $88,602,823.50; 5,034,585 shares of Hewlett Packard (NYSE: HPQ) valued at $144,794,664.60; 13,891,735 shares of Intel (NASDAQ: INTC) valued at $371,187,159.20; 19,277,496 shares of Microsoft (NYSE: MSFT) valued at $582,180,379.20; and 722,210 shares of Motorola Solutions (NYSE: MSI) valued at $33,727,207.00.

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TEXT IN FULL OF THE SHAREHOLDER PROPOSAL:

Encourage Supplier(s) to Publish an Annual Sustainability Report

WHEREAS, increasingly, multinational companies are realizing that their suppliers’ impacts and sustainability are inextricably intertwined with their own; and
WHEREAS, the UN Global Compact-Accenture CEO Study 2010, “A New Era of Sustainability”, found that 93% of surveyed CEOs believe that sustainability issues will be critical to the future success of their
business, and 88% believe that they should be integrating sustainability through their supply chain, where the most significant performance gap is seen; and
WHEREAS, a study by Aaron Bernstein and Christopher Greenwald, “Benchmarking Corporate Policies on Labor and Human Rights in Global Supply Chains,” (Pension and Capital Stewardship Project Labor and Work-Life Program Harvard Law School, Nov. 2009), found a significant gap between general policies against labor and human rights abuse and more detailed standards and enforcement mechanism required to carry them out; and
WHEREAS, in 2010, PUMA, the Sport lifestyle company, in cooperation with the Global Reporting Initiative’s (GRI’s) Global Action Network for Transparency in the Supply Chain, which provides GRI certified training on transparent measurement and reporting to supplier factories, expanded its strategic suppliers sustainability reporting project with commitments from 20 suppliers in South East Asia and
other major sourcing regions that they will issue their own sustainability reports from 2011 on; and
WHEREAS, given the merit of the old adage, “What Gets Measured Gets Done”, the long-term interests of multinational companies and their shareholders would be enhanced if companies were to urge their suppliers to establish performance goals on human and worker rights, and to measure and publicly report on performance using internationally recognized standards and measurement protocols;
THEREFORE, BE IT RESOLVED:  the shareholders request that the Board of Directors, using a phased, tiered approach that the Company deems reasonable and practical, take the necessary steps to help move the
Company’s supplier(s) to begin publishing annual, independently verifiable, sustainability reports.  Among other important disclosures, reports should include the suppliers’ objective assessments and measurements of performance on workplace safety, and human and worker rights, using internationally recognized standards,
indicators and measurement protocols. In addition, reports should include incidents of non-compliance, actions taken to remedy those incidents, and measures taken to contribute to long-term prevention and mitigation.
Statement in Support
A company’s best opportunity for early identification and mitigation of the risks posed by the human and labor rights violations of its suppliers is the development and rigorous implementation of a risk-management framework to enable its monitoring and verification of its suppliers’ performance against internationally recognized standards of human and labor rights, using measurable and verifiable indicators of performance.  Annual sustainability reporting by its supplier(s) would strengthen the company’s ability to assess its suppliers’ performance, to hold its suppliers accountable, help to drive performance improvements, and enable investors to better understand and assess potential reputational and /or operational risks.

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In addition to Comptroller Liu, the New York City Pension Funds trustees are:

New York City Employees’ Retirement System: Ranji Nagaswami, Mayor’s Representative (Chair); New York City Public Advocate Bill de Blasio; Borough Presidents: Scott Stringer (Manhattan), Helen Marshall
(Queens), Marty Markowitz (Brooklyn), James Molinaro (Staten Island), and Ruben Diaz, Jr. (Bronx); Lillian Roberts, Executive Director, District Council 37, AFSCME; John Samuelsen, President Transport Workers Union Local 100; Gregory Floyd, President, International Brotherhood of Teamsters, Local 237.

Teachers’ Retirement System: Ranji Nagaswami, Mayor’s Representative; Deputy Chancellor Kathleen Grimm, New York City Department of Education; Mayoral appointee Lisete Nieves and Sandra March, Melvyn Aaronson (Chair) and Mona Romain, all of the United Federation of Teachers.

New York City Police Pension Fund: Mayor Michael Bloomberg; New York City Finance Commissioner David Frankel; New York City Police Commissioner Raymond Kelly (Chair); Patrick Lynch, Patrolmen’s
Benevolent Association; Michael Palladino, Detectives Endowment Association; Edward D. Mullins, Sergeants Benevolent Association; Thomas Sullivan, Lieutenants Benevolent Association; and, Roy T. Richter, Captain’s Endowment Association.

New York City Fire Department Pension Fund: Mayor Michael Bloomberg; New York City Fire Commissioner Salvatore Cassano (Chair); New York City Finance Commissioner David Frankel; Stephen Cassidy, President, James Slevin, Vice President, Robert Straub, Treasurer, and John Kelly, Brooklyn Representative and Chair, Uniformed Firefighters Association of Greater New York; John Dunne, Captains’ Rep.; James Lemonda, Chiefs’ Rep., and James J. McGowan, Lieutenants’ Rep., Uniformed Fire Officers Association; and, Sean O’Connor, Marine Engineers Association.

Board of Education Retirement System: Schools Chancellor Dennis Walcott; Mayoral: Eduardo Marti, Gitte Peng, Jeff Kay; Tino Hernandez, Judy Bergtraum, Freida Foster, Linda Laursell Bryant, and Lisette Nieves; Patrick Sullivan (Manhattan BP), Gbubemi Okotieuro (Brooklyn BP), Dmytro Fedkowskyj (Queens BP), Wilfredo Pagan (Bronx BP) and Diane  Peruggia (Staten Island BP); and employee members Joseph D’Amico of the IUOE Local 891 and Milagros Rodriguez of District Council 37, Local 372.

 

Croton Facility Monitoring Committee Meeting

Thursday, February 16, 2012 – 7:00 PM

DEP Office – 3660 Jerome Avenue, Bronx NY 10467

 Agenda

I  Welcome & Remarks of New Chair        Paul Foster, Chair


II  Consider, Adopt This Meeting Agenda        CFMC Representatives


III Consider, Adopt 1/12/12 Meeting Minutes    CFMC Representatives

IV Continuation, Further Discussion about Croton    Hector Aponte, DPR & CFMC Funded Parks and Costs            Representatives

   
       
V Construction Update, Schedule & Costs         Bernard Daly, P.E., DEP

                           
VI  Explanation of Croton Design Contract        Lauren Competello, P.E., DEP
    Increases & Change Orders

VII Croton Jobs & Bronx Purchases    Thomas Farrell, P.E., Construction Manager

VIII CFMC Discussion, Set Next Meeting        CFMC Representatives


IX Adjourn

  

Santorum Three for Three Last Night

 Last night the states of Colorado, Missouri, and Minnesota all held caucuses to determine their Republican choice for President. Mitt Romney the front runner lost all three races to Rick Santorum. We had no prediction in these three races, but if you check our blog archive of January you can find under the title "Gingrich wins South Carolina", that we predicted then and still believe that Rick Santorum will be the Republican candidate to challenge President Obama. 

  We now believe that Newt Gingrich will drop out of the race sometime soon to endorse Rick Santorum as the choice of the Republican Party for President of the United Stated.

  Santorum won Missouri with 55% to Romney at 25+%, with Paul getting 12+%, and 7+% to others. Newt Gingrich was not on the Missouri ballot.

  Santorum won Minnesota with 45% to Paul's 27%, with third place finisher Romney at 17%, and Gingrich at 11%.

  Santorum Won Colorado with 40% to Romney at 35%, Gingrich at 13%, and Paul at 12%.

GOVERNOR CUOMO, MAYOR BLOOMBERG AND BOROUGH PRESIDENT DIAZ ANNOUNCE FRESHDIRECT TO OPEN NEW HEADQUARTERS IN THE BRONX CREATING NEARLY 1,000 NEW JOBS

Company to invest $112 million to build a state-of-the-art facility at the Harlem River Yards that will employ nearly 3,000 workers and serve as its center of regional 

Governor Andrew M. Cuomo, Mayor Michael R. Bloomberg, and Bronx Borough President Ruben Diaz Jr., today announced that FreshDirect, a leading fresh food internet grocer, will invest $112.6 million to build its new headquarters and operations center at Harlem River Yards, retaining nearly 2,000 existing jobs and creating almost 1,000 new jobs. The construction of the new facility will also result in the creation of approximately 684 construction jobs in the City.

“FreshDirect is a home-grown success that will now continue to grow and create jobs in New York,” Governor Cuomo said. “Creating almost a thousand new jobs is a real victory for the Bronx and a clear sign that leading New York companies see this state as the place to start, stay and strengthen their businesses.”

New York City Mayor Michael R. Bloomberg said, “Making sure that companies like FreshDirect can grow and invest in New York City is a key part of our strategy to rebuild and diversify our economy. A thousand new jobs at the Harlem River Yards is great news for the Bronx and a welcome boost to our City’s economy.”

Bronx Borough President Ruben Diaz Jr. said, “I welcome FreshDirect to the Bronx with open arms. This iconic company will not only stay in New York where it belongs thanks to this deal, they will bring 1,000 new jobs with them to our borough. More and more companies are discovering that the Bronx is a great place to do business, and FreshDirect’s move to our borough is a major positive step forward for our economy.”

FreshDirect Chief Executive Officer Jason Ackerman said, “From day one, New York has been our home, and we are grateful for the support of Governor Cuomo and Mayor Bloomberg in making New York a place FreshDirect wants to stay and grow in, and for Bronx Borough President Diaz welcoming us. With significant growth in our customer base, we need to expand our operations. A new state-of-the-art facility at the Harlem River Yard in the Bronx would allow us to operate more efficiently, maintain our relationships with NYS vendors, local farmers and purveyors and continue our long track record of growth and job creation in New York.”

FreshDirect, founded in 1999 and currently based in Long Island City, New York, purchases produce, meat and dairy from over 60 New York State-based farms and serves a customer base of over 100,000 people with 97 percent of their employees coming from New York State. To meet the needs of its rapidly growing customer base, FreshDirect will invest $112.6 million to construct a state-of-the-art 500,000 square foot facility on a 16 acre parcel at Harlem River Rail Yards in the Bronx. From its new headquarters and operations, the company will dramatically expand its service area to regions surrounding New York City, as well as New Jersey, Connecticut, and Philadelphia.

To encourage FreshDirect to retain and expand their operations in New York City, a package of state and city incentives valued at over $100 million is being provided to augment the company’s private investment including:

New York State:

· $18.9 million in Excelsior tax credits (ESD)
· $9 million capital grant (ESD)
· $4 million in energy grants and incentives (NYPA/NYSERDA)
· $1 million loan (ESD)
· Up to $1 million in vouchers for the purchase of electric vehicles (NYSERDA)

New York City:

· Approximately $74 million in sales tax exemptions, mortgage recording tax deferral, and real estate tax exemption spending approval (NYCIDA)
· $9.5 million to acquire assets to be used at the new facility at Harlem River Rail Yards pending approval (NYCIDA)
· $4.9 million in energy benefits (NYCEDC)
· $1 million loan (NYCEDC)

Bronx Borough President:

· $1 million capital grant

Bronx Overall Economic Development Corporation:

· $3 million loan
· $500,000 capital grant

FreshDirect plans to purchase 10 electric refrigerated electric trucks from Smith Electric Vehicles, and five additional electric refrigeration units that can be placed on existing trucks. Smith Electric is a leader in zero-emission, all-electric commercial vehicles, which – through a federally-funded program and with assistance provided by New York City and State - recently announced plans to establish a clean technology manufacturing facility in the South Bronx that will create more than 100 new direct jobs.

Empire State Development President, CEO & Commissioner Kenneth Adams said, "Thanks to Governor Cuomo’s leadership, a true New York success story is staying in New York. This is another strong signal of how the Governor’s efforts to create a better business environment are paying off in the form of more jobs for New Yorkers."

New York City Economic Development Corporation President Seth W. Pinsky said, “While New York City is the home to some of the most innovative companies in the world, there are few that have impacted the daily habits of New Yorkers like FreshDirect. Over the next decade, this project will lead to significant investment in the South Bronx, creating thousands of jobs for New Yorkers, generating hundreds of millions of dollars in overall economic activity, and ensuring that this hometown success story is able to continue its tremendous growth right here in the five boroughs where it belongs.”

NYC Deputy Mayor Robert K. Steel said, “FreshDirect’s decision to expand in the Bronx is a strong statement of confidence in New York City's future. Today’s announcement is the latest sign that more and more businesses want to be in New York City.”

Bronx Overall Economic Development Corporation President Marlene Cintron said, “FreshDirect's move to the Bronx will bring much needed jobs to the borough, along with additional business opportunities here and across the region for companies of all types. I look forward to working with them to expand the borough’s economy for years to come.”

Klein Legislation to Protect Domestic Violence Victims Passes Senate

Important legislation by Senator Jeffrey D. Klein, (D-Bronx/ Westchester), that would protect victims of domestic violence from their abusers passed unanimously today in the State Senate.

The measure, (S.1031B), requires insurance companies to give domestic violence victims the option of registering an alternative address, phone number, or any other contact information needed to receive bills and claims. In many cases, when a victim seeks medical attention, their insurance policy is under their abuser’s name.

“Divulging details of a domestic violence victim’s whereabouts and sending it straight to their abuser’s mailbox is an unacceptable and avoidable recipe for tragedy,” Senator Klein said. “My legislation closes this dangerous loophole and helps these victims escape the cycle of abuse.”

Senator Klein’s bill would prevent claims and bills from being mailed to an abuser's address and instead be mailed directly to the victim. The bill would allow victims to provide an address where they feel safe such as a family member or friend’s home, a post office box or shelter.

The bill is pending in the Assembly. 

HDC, HPD & NYCHA JOIN MACQUESTEN DEVELOPMENT AND PARTNERS TO CELEBRATE REV. DR. FLETCHER C. CRAWFORD APARTMENTS

An 84-unit Multi-family Development Opens in the Crotona Park East Neighborhood of the Bronx 

 

 The NYC Department of Housing Preservation and Development (HPD), The NYC Housing Development Corporation (HDC), The New York City Housing Authority (NYCHA), and NYS Department of Homes & Community Renewal (DHCR) were recently joined by MacQuesten Development and the Union Grove Baptist Church to celebrate the grand opening of the Reverend Dr. Fletcher C. Crawford Apartments, an 84-unit low-income development in the Crotona Park East neighborhood of The Bronx, located at 1468 Hoe Avenue.

The completion of this development is a positive step for quality permanent rental housing for working families in the Bronx," said Rella Fogliano, President of MacQuesten Development, LLC. "During this project, we provided much needed construction jobs and vital skill development to local residents for future employment opportunities.

  

The Rev. Dr. Fletcher C. Crawford Apartments were created under the Bloomberg Administration’s New Housing Marketplace Plan.  The plan, launched by Mayor Bloomberg in 2003, is a multibillion dollar initiative to finance 165,000 units of affordable housing for half a million New Yorkers by the close of the 2014 fiscal year.

The development is an 82,891 square-foot, eight-story masonry elevator building, constructed on formerly City-owned land that was conveyed by NYCHA to the developer. The building includes seven studio units, 29 one-bedroom units, 40 two-bedroom units, seven three-bedroom units and one superintendent unit.  Seven of the apartments have been set aside for people with impaired mobility, hearing and vision. Additionally, 20% of the units were set aside for formerly homeless households.  Another 25% of the units have been reserved for households referred to by the New York City Housing Authority (NYCHA) from its waitlist.  The 84 units are affordable to tenants who earn less than 60% of Area Median Income (AMI) or what is equivalent to not more than$46,080 (for a family of four).

You can call Cornell Pace at 914-380-8220 for more information.

This came to us from from MacQuesten Development.

 

What You Should Know by Senator Ruben Diaz
32nd Senatorial District Bronx County, New York

 

The government is cutting social services for the poor, to the elderly they are reducing their meals and closing their senior centers, they are cutting our children’s education and turning their backs on the needy… all of this to balance the state’s budget.

My dear reader, you should know that all these aberrations are happening to the poor in our communities and the governor continues to cut their services. At the same time there are certain institutions that receive billions of dollars at the expense of the suffering poor.

Our hospitals and medical centers receive billions of dollars of public funds through Medicaid and Medicare in order to improve the health of the poor and the needy throughout the State. They pay the CEOs of these hospitals an exorbitant amount of money, while at the same time they cut important programs and offer terrible services to the poor.

You, dear reader, should take a little walk around the emergency room, that is if you have not done so already, and you should ask the patients the following questions: how long have you been waiting here? Do you think the hospital is clean? What do you think about the services that are being provided? And above all else, you have to ask them about the treatment they receive from the staff.

Meanwhile these abuses get worse each day and medical centers are more abusive towards the poor population. Medicaid funds, as well as public funds, are paying administrative salaries, in order to supposedly alleviate patients’ pain and suffering. Instead, what they are doing is inflicting pain by providing poor services.

You should know that according to the New York Times, Bronx Lebanon Hospital paid the chief executive an annual salary of 4.8 million dollars in 2007 and 3.6 million in 2008. At New York Presbyterian Hospital, the chief executive was paid 9.8 million dollars in 2007 and 2.8 million dollars in 2008.  Mount Sinai Hospital paid its chief executive 2.7 million in 2008 and North Shore-Long Island Jewish Health System paid its chief executive 2.4 million dollars in 2008.

These hospitals serve the State’s poor communities and they receive billions of dollars to take care of them. How is it possible to cut service and criticize our people for receiving Medicaid and Medicare, while at the same time they are paying the chief executives these exorbitant salaries?

For example, Bronx Lebanon Hospital mainly serves Hispanics and  African-Americans of the South Bronx, who stand in lines and wait all day to be treated; meanwhile the CEOs have tremendous offices with air conditioners, secretaries, and limousine services at their disposal.

My advice for these hospitals and medical centers is that instead of paying huge salaries to these CEOs, they should use the money to hire more nurses, personal care assistants, primary care doctors, and janitors in order to help the patients. Then the patients won’t have to wait so long to be
served and their waiting rooms would look and smell more decent.

I am Senator Reverend Rubén Díaz and this is what you should know.  

Do Our State Legislators Know The State Boundaries?
Or: When Did  Secaucus New Jersey Become Part Of New York State?

   Here is a resolution to be voted on Tuesday February 7th in both houses of the state legislature. Please note that the state legislators have the name the state of the football team named the Giants who play their home games in the state of New Jersey as a New York team. Is it any wonder why our school children get answers wrong when their elected officials don't even know their own state boundaries.
   New York City School Children must think That the mayor of New York City is Corey Booker, who just happens to be the mayor of Newark, which is in the same state as the Giants. New York State School children must think that the governor of New York is then Chris Christie. I wonder how many school children even know the names of their state assembly member or state senator?
   It was a great win for the New Jersey Giants!