Labor Issues in Sylacauga Dominate Imerys Shareholder Meeting

PARIS FR, MAY 9--If Imerys management expected the company's stellar financial performance to capture shareholders' attention at its annual meeting in Paris, it was sadly disappointed. Stealing the show were the labor problems the company had created at its plant in Sylacauga, Alabama, one of 200 plants the company operates worldwide.

Shareholders heard from ICEM's Yrki Raina, who was representing 4,000 Imerys shares held by Walden Asset Management. He recounted the union busting committed by the company, and told the over 200 shareholders in attendance that a "card check," in which union recognition is granted after a majority of workers sign authorization cards, is the best way to resolve the problems. This was necessary, commented Raina, since the company had destroyed the conditions under which a free election could occur.

Penny Schantz, PACE European Coordinator, asked Imerys CEO Patrick Kron why Imerys still intended to campaign against the union, if an election was held. She gave PACE's official written position to Kron which stated that any company campaigning against the union is "unacceptable." PACE maintains that workers should decide the question of union representation without company interference.

Kron, cordial although somewhat shaken by the unoflding events, said the company intended to communicate with workers as part of a campaign, should an election occur, but "not against the union." Kron also said that the situation in Sylacauga should be handled locally and "not by filing complaints with the OECD or bringing these issues to Paris." Kron was referring to a news release from PACE and the AFL-CIO European office earlier in the week, which announced that a formal complaint with OECD, the organization representing the world's wealthiest countries, was being considered.

Shareholders were given handbills upon entering the hall where the meeting was held which raised important questions about Imerys' behavior in Alabama. One question stated, "Why has the company engaged in ant-union practices in the U.S. when it's trying to improve relations with unions in Europe?"

Taking part in the handbilling were Jerry Zelhoeffer, AFL-CIO European Represenative, and John Evans of the Trade Union Advisory Council of the OECD.

Media interest in this story appears to be growing in France. Two major French dailies are reportedly doing columns on it.