WELLS FARGO & COMPANY | Respect for Freedom of Association and Collective Bargaining at WELLS FARGO & COMPANY

Status
35.64% votes in favour
AGM date
Previous AGM date
Proposal number
11
Resolution details
Company ticker
WFC
Lead filer
AFL-CIO Reserve Fund
Resolution ask
Adopt or amend a policy
ESG theme
  • Social
ESG sub-theme
  • Decent work
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Financials
Company HQ country
United States
Resolved clause
RESOLVED: Shareholders urge the Board of Directors of Wells Fargo & Company (“Wells
Fargo”) to adopt and publicly disclose a policy on its commitment to respect the international
human rights of freedom of association and collective bargaining. The policy should:
• Be applicable to Wells Fargo’s direct operations and subsidiaries globally;
• Include a commitment to non-interference when employees exercise their right to form or join trade unions;
• Prohibit any member of management or agent of Wells Fargo from undermining the right to form or join trade unions or
pressuring any employee from exercising this right;
• Describe the ongoing due diligence process Wells Fargo will use to identify, prevent, mitigate and account for any violations of
these rights, including how it will remedy any misaligned practices.
Supporting statement
Freedom of association and the effective right to collective bargaining are internationally recognized human rights according to the
International Labour Organization’s Declaration on Fundamental Principles and Rights at Work and the United Nations’ Universal
Declaration of Human Rights. However, Wells Fargo’s Human Rights Statement, Code of Conduct, and Supplier Code of Conduct are
silent on Wells Fargo’s obligations to respect the international human rights of freedom of association and collective bargaining.
In February 2022, Wells Fargo published “Priority Recommendations of the Wells Fargo Human Rights Impact Assessment and
Actions in Response” that summarized a human rights impact assessment performed by a third party law firm. The
recommendations stated that “Wells Fargo should consider prioritizing the issuance of a comprehensive human rights policy and
providing training to the bank’s leadership and senior management regarding the [United Nations Guiding Principles on Business
and Human Rights].”
In response to lawmakers’ questions at a U.S. Senate Committee on Banking, Housing, and Urban Affairs hearing on September 22,
2022 and a U.S. House Committee on Financial Services hearing on September 21, 2022, Wells Fargo CEO Charles Scharf declined to
commit to remain neutral if Wells Fargo’s employees seek to unionize. And on June 15, 2022, an unfair labor practice charge was
filed with the National Labor Relations Board alleging that Wells Fargo discharged an employee in retaliation for exercising her
freedom of association rights.1
We believe this resolution will also help address human rights risks at Wells Fargo’s operations in other countries. Wells Fargo’s largest
international operations are in India and the Philippines. The 2022 ITUC Global Rights Index rated India and the Philippines as
countries with no guarantee of rights, explaining that such countries are “the worst countries in the world to work in. While the
legislation may spell out certain rights, workers have effectively no access to these rights and are therefore exposed to autocratic
regimes and unfair labour practices.”2
For these reasons, we urge shareholders to vote FOR this resolution.

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
Rothschild & co Asset Management For
Anima Sgr For Although peer disclosures are uneven, Wells Fargo seems to be behind some of its peers in its disclosure related to freedom of association and collective bargaining. Some of the company’s employees are pushing to unionize, and the company has received media attention over charges filed with the NLRB that allege it suppressed union efforts. The criteria laid out in the proposed policy may benefit shareholders by improving the company’s management of freedom of association and collective bargaining issues, while still offering the company enough flexibility to constructively engage on these issues.

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