-- Shareholders Call on Board to Address Human Capital Issues
at North American Subsidiaries
LONDON, March 12, 2014 /PRNewswire/ -- Shareholders
in National Express Group PLC (NEX: LN) have submitted a
shareholder proposal to the company, calling on the Board of
Directors of the U.K.-listed multinational transport corporation to
improve oversight and increase transparency concerning the
company's human capital management policies and practices.
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More than 100 Teamster shareholders, the Teamsters General Fund
and Local Authority Pension Fund Forum (LAPFF) members—Greater
Manchester, LB of Islington and Nottinghamshire County Council —are
co-sponsoring the resolution. These LAPFF members hold three
million shares of National Express.
The shareholder proposal calls for the Board to expand the role
and responsibilities of its Safety and Environment Committee to
provide quality oversight of the company's human capital management
and to adopt a meaningful and enforceable workplace human rights
policy.
The shareholder proposal is intended to be put before the
company's Annual General Meeting to be held on May 15, 2014.
The shareholder proposal is the culmination of more than four
years of shareholder engagement with the senior leadership of
National Express, including repeated requests to the National
Express Board of Directors and senior management to address
serious, systemic problems with the company's human capital
management in North America. These
potentially create risks for the sustainability and growth of its
most profitable business—North American school bus services.
The proponents of the resolution point out that National Express
employs more than 35,000 people worldwide and that no Board
committee seems to be responsible for ensuring that the company's
people strategy is aligned with the overall strategy.
"LAPFF members are long-term investors, and believe that
effective management of human capital is crucial to delivering
sustainable returns. Employees who feel their rights are respected,
and are offered a good deal by their employer, are more likely to
stick by the company and do a good job," said Councillor Kieran
Quinn, Chairman, Greater Manchester Pension Fund. "We're not
convinced that National Express is getting this right currently,
and we are filing this resolution so shareholders can give the
Board a clear mandate to address these risks to the value of the
company and its sustainability."
"The problems at National Express in North America are systemic and longstanding,
and the Board's inaction has gone on long enough," said
Ken Hall, International Brotherhood
of Teamsters General Secretary-Treasurer. "We believe the poor
morale the Board has allowed to fester at Durham in the USA and Stock Transportation in Canada has increased safety risks in an
industry where safety is most critical—student school bus
transportation. It's time for this Board to pay attention to its
shareholders and take proactive action to ensure safety and worker
rights throughout National Express' global operations."
BACKGROUND NOTES
National Express (NEX) is the parent
company of Durham School Services in the
United States and Stock Transportation in Canada, both school bus transportation
subsidiaries. Durham School Services is the second-largest student
transportation company in the United
States. There are 4,500 Teamster members working at National
Express in North America.
The National Labor Relations Board (NLRB), which oversees U.S.
labor law, issued 57 informal complaints since 2001 against Durham
School Services. These complaints were denied by Durham but subsequently resulted in
settlements. More complaints have been filed this year and the
company is challenging them.
The complaints came as a result of a range of allegations by
Durham workers over poor
management and human capital practices including alleged disparate
treatment, discipline and discharge of employees engaged in union
organizing; alleged illegal surveillance of workers engaged in
union activity; and allegedly threatening workers with reduction in
benefits, working conditions and the loss of employment for
supporting unionization.
It is claimed these practices infringe provisions of the
National Labor Relations Act of 1935.
In May 2013, a delegation of NEX
subsidiary Durham School Services workers from the United States traveled to the National
Express Annual General Meeting to share their experiences and
concerns with the Board and institutional shareholders and implore
the Board to take a proactive position on human capital
management.
THE TEAMSTERS
The Teamsters Drive Up Standards
campaign to improve safety, service and work standards in the
private school bus and transit industry in North America began in 2006. Since then, more
than 36,500 North American school bus and transit workers have
become Teamsters. Founded in 1903, the Teamsters Union represents
1.4 million hardworking men and women throughout the United States, Canada and Puerto
Rico. Visit www.teamster.org for more information. Follow us
on Twitter @Teamsters and "like" us on Facebook at
www.facebook.com/teamsters.
LOCAL AUTHORITY PENSION FUND FORUM (LAPFF)
LAPFF
represents the interests of 60 UK public sector pension fund
members with combined assets of approximately £120 billion. Its
mission is to protect the long-term investment interests of
beneficiaries by promoting the highest standards of corporate
governance and corporate responsibility amongst investee
companies.
COMPANY PROFILE
National Express Group PLC is the
holding company of the National Express Group of companies, a FTSE
250 company listed on the London Stock Exchange with a market
capitalization of £1526.5 M as of 25th February. Subsidiary
companies provide mass passenger transport services in the
United Kingdom and overseas. The
company's segments include UK Bus, UK Coach, Rail, North American
Bus, European Coach & Bus, and Central functions.
The company operates in the United
Kingdom, North America,
Spain and Morocco. Its business in North America is focused solely on student
transportation and operates in 32 states of the United States and four Canadian
provinces.