| report on Vendor Standards compliance
mechanisms and progress in achieving compliance for its
vendors, subcontractors and buying agents in the countries
where it sources. A summary of the results should be reported
to shareholders by October 2001.
A similar resolution on last year’s proxy received
the support of 8.8 million shares or 9.9% of all shares
voted. When 4.5% of shares that abstained are included,
nearly 15% did not agree with management’s position.
The result was impressive given that about one-third
of the company’s common stock is held by officers or
board members of the company. This vote was a strong
indication that a significant number of Nordstrom shareholders
are concerned about this issue, yet the company still
has not moved to provide a report.
Nordstrom’s products are manufactured in a global economy
where costs are kept down because suppliers often operate
in areas where labor rights are not respected, health,
safety and environmental regulations are not enforced,
and extremely low wages are the norm. But membership
in this global economy bears responsibilities as well.
The proponents wish to protect Nordstrom’s brand
name and avoid costs to the company that can stem from
abusive contract labor conditions in facilities producing
for Nordstrom.
In August 1999, Nordstrom and three
other manufacturers with operations in Saipan,
a U.S. commonwealth territory, settled lawsuits alleging
illegal labor practices in Saipan, including mistreatment
of workers and failure to pay proper wages. Saipan is
exempt from American labor laws. Under the settlement,
Nordstrom and three other companies agreed to pay a
total of $1.25 million to reimburse workers for "recruitment
fees" that were improperly charged in exchange for being
hired, and to fund a program of independent monitoring
of factories operated by their contractors on the island.
Actions like these demonstrate that our company’s reputation
is at risk. Failure to act on allegations of labor abuses
at supplier factories has damaged the reputations of
marketing giants such as Nike and Wal-Mart.
Shareholders need the company to report on the specific
actions it has taken to comply with its contract labor
code. The company should periodically report to shareholders,
explaining how contract suppliers are monitored, how
often facilities are inspected, the number of facilities
that fail audits, the most prevalent types of violations,
steps taken to work with problematic vendors to achieve
compliance, and contracts ended for noncompliance.
Please send a message to management to protect Nordstrom’s
brand name: Vote FOR Resolution #4!
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