Dollarama, Inc. | Freedom of Association at Dollarama

Status
17.76% votes in favour
AGM date
Previous AGM date
Proposal number
1
Resolution details
Company ticker
DOL
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Decent work
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Consumer Discretionary
Company HQ country
Canada
Resolved clause
in light of the potential for adverse human rights impacts through the use of third-party staffing agencies, shareholders request Dollarama disclose whether it requires its suppliers, including its third-party staffing agencies, to respect their employees
Supporting statement
Dollarama discloses that the majority of its warehouse and distribution centre staffing needs are outsourced to “well-established third-party agencies”. Dollarama does not serve as employer to such staff, which are instead employees of the third-party staffing agencies. Dollarama states that it is not responsible for hiring or training such workers. In its June 2021 ESG Report, Dollarama describes the need for relying on third-party agencies for its warehouse and distribution centre staffing needs: The use of such agencies is integral to our business model in order to continuously maintain the significant staffing requirements of these un-automated operations, needs which fluctuate throughout the year based on sales volumes, and to fulfill positions that are subject to regular turnover due to the large number of entry-level positions. Employment Practices of Leading Canadian Retailers Leading Canadian retailers Loblaw, Metro and Canadian Tire clearly face the same fluctuating seasonal needs, yet none of them disclose using third-party staffing agencies to staff their warehouses and distribution centres. In fact, certain warehouse/distribution centres for Loblaw and Metro are unionized. Further, each of Loblaw, Metro and Canadian Tire have vendor/supplier codes of conduct that require that suppliers allow their employees the lawful right to free association / collective bargaining. Dollarama’s ESG Report addresses Dollarama’s focus on safeguarding human rights in its supply chain, and it states that Dollarama launched an enhanced vendor/supplier code of conduct in June 2021 which draws upon the UN Guiding Principles on Business and Human Rights (UNGPs). However, and interestingly, Dollarama’s enhanced vendor/supplier code of conduct does not require suppliers to respect their employees’ right to free association / collective bargaining. Human Rights Risk and Third-Party Staffing Agencies The leading centre of expertise on the UNGPs, Shift, together with the Institute for Human Rights and Business (IHRB), developed a guide for the implementation of the UNGPs by staffing agencies. The guide states that staffing agency workers may have heightened vulnerability to adverse human rights impacts, particularly where “[t]hey cannot join a trade union at the user enterprise, and lack equivalent representation and collective bargaining ability in their relationship with the E&R [employment & recruitment] agency.” The guide states that this “may lead to agency workers sometimes receiving lower wages and benefits than workers hired directly for the same jobs, non-payment of benefits, discrimination or the effective denial of freedom of association and collective bargaining rights.” Furthermore, a 2016 report from the Director of Public Health for Montréal notes the risk of occupational injury is between “high” and “extreme” for temporary agency workers. Agency workers account for a higher proportion of injuries, and their occupational vulnerability causes them to hesitate to report occupational injuries and file for compensation.

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