LIU, NYC FUNDS REACH EQUAL RIGHTS AGREEMENTS WITH RALPH LAUREN, DOMINO'S PIZZA
Four Companies Adopt Policies Protecting Employees from Bias Based on
Gender Identity; Shareowners to Vote at Three Resistant Firms
Yesterday, City Comptroller John C. Liu and the New York City Pension Funds announced that four companies — Ralph Lauren (NYSE: RL), Domino's Pizza (NYSE: DPZ), Philip Morris (NYSE: PM), and Anadarko Petroleum (NYSE: APC) — have agreed to expand their employee-protection policies to prohibit discrimination based on gender identity.
"Equal rights in the workplace are vital to any company that wants to hire the best and the brightest," Comptroller Liu said. "We commend these companies for recognizing that prohibiting discrimination based on gender identity not only improves their workforce, but also helps secure their long-term value."
Civil-rights protections for employees sends a powerful message that all employees are treated equally and help ensure a broader, more competitive pool of candidates for jobs. Failure to adopt such workplace protections can prevent a company from hiring the most talented people. Twelve states and the District of Columbia have laws prohibiting employment discrimination based on sexual orientation and gender identity.
The agreements represent the first time that Comptroller Liu and the NYC Funds engaged Ralph Lauren, Domino's Pizza, and Philip Morris in pursuit of such a request for broader employee protections. It was not, however, the NYC Funds first such engagement with Anadarko, to which the Funds first brought the proposal in 2008. Andarko's shareowners voted on the proposal every year from 2008 to 2012, when it received the support of 43 percent of voting shares, before the company finally agreed this year to amend its policy. Each of the four companies had already adopted policies protecting employees against discrimination based on sexual orientation, but not gender identity. As a result of the agreements, the Comptroller's Office and NYC Pension Funds have withdrawn their shareowner proposals requesting the expanded policies from the four companies.
As they have for the past several years, Comptroller Liu and the NYC Funds also submitted their proposal to three companies — Leggett & Platt (NYSE: LEG), Crosstex Energy (NASDAQ: XTEX), TECO Energy (NYSE: TE) — that do not offer their employees protections against discrimination based on either sexual orientation or gender identity. In 2012, 42 percent of Leggett & Platt voting shares asked the company to adopt the expanded non-discrimination policy.
New York City Comptroller John C. Liu serves as the investment advisor to, custodian, and trustee of the New York City Pension Funds. The New York City Pension Funds are composed of the New York City Employees' Retirement System, Teachers' Retirement System, New York City Police Pension Fund, New York City Fire Department Pension Fund, and the Board of Education Retirement System. The New York City Pension Funds held a combined 1,006,204 shares in Leggett & Platt, Crosstex Energy, and TECO Energy valued at $23,148,472.03 as of May 1, 2013.
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TEXT IN FULL OF THE SHAREOWNER PROPOSAL:
SEXUAL ORIENTATION NON-DISCRIMINATION POLICY
Whereas: Leggett & Platt, Incorporated does not explicitly prohibit discrimination based on sexual orientation and gender identity in its written employment policy;
Over 88% of the Fortune 500 companies have adopted written nondiscrimination policies prohibiting harassment and discrimination on the basis of sexual orientation, as have more than 98% of Fortune 100 companies, according to the Human Rights Campaign; over 30% now prohibit discrimination based on gender identity;
We believe that corporations that prohibit discrimination on the basis of sexual orientation and gender identity have a competitive advantage in recruiting and retaining employees from the widest talent pool;
According to a June, 2008 survey by Harris Interactive and Witeck-Combs, 65% of gay and lesbian workers in the United States reported facing some form of job discrimination related to sexual orientation; an earlier survey found that almost one out of every 10 gay or lesbian adults also reported that they had been fired or dismissed unfairly from a previous job, or pressured to quit a job because of their sexual orientation;
Twenty states, the District of Columbia and more than 160 cities and counties, have laws prohibiting employment discrimination based on sexual orientation; 12 states and the District of Columbia have laws prohibiting employment discrimination based on sexual orientation and gender identity;
Minneapolis, San Francisco, Seattle and Los Angeles have adopted legislation restricting business with companies that do not guarantee equal treatment for gay and lesbian employees;
Our company has operations in, and makes sales to institutions in states and cities that prohibit discrimination on the basis of sexual orientation;
National public opinion polls consistently find more than three quarters of the American people support equal rights in the workplace for gay men, lesbians and bisexuals; for example, in a Gallup poll conducted in May, 2007, 89% of respondents favored equal opportunity in employment for gays and lesbians;
Resolved: The Shareowners request that Leggett & Platt, Incorporated amend its written equal employment opportunity policy to explicitly prohibit discrimination based on sexual orientation and gender identity or expression and to substantially implement the policy.
Supporting Statement: Employment discrimination on the basis of sexual orientation and gender identity diminishes employee morale and productivity. Because state and local laws are inconsistent with respect to employment discrimination, our company would benefit from a consistent, corporate wide policy to enhance efforts to prevent discrimination, resolve complaints internally, and ensure a respectful and supportive atmosphere for all employees. Leggett & Platt, Incorporated will enhance its competitive edge by joining the growing ranks of companies guaranteeing equal opportunity for all employees.
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In addition to Comptroller Liu, the New York City Pension Funds trustees are:
New York City Employees' Retirement System: Janice Emery, Mayor's Representative (Chair); New York City Public Advocate Bill de Blasio; Borough Presidents: Scott Stringer (Manhattan), Helen Marshall (Queens), Marty Markowitz (Brooklyn), James Molinaro (Staten Island), and Ruben Diaz, Jr. (Bronx); Lillian Roberts, Executive Director, District Council 37, AFSCME; John Samuelsen, President Transport Workers Union Local 100; Gregory Floyd, President, International Brotherhood of Teamsters, Local 237.
Teachers' Retirement System: Janice Emery, Mayor's Representative; Deputy Chancellor Kathleen Grimm, New York City Department of Education; and Sandra March, Melvyn Aaronson (Chair) and Mona Romain, all of the United Federation of Teachers.
New York City Police Pension Fund: Janice Emery, Mayor's Representative; New York City Finance Commissioner David Frankel; New York City Police Commissioner Raymond Kelly (Chair); Patrick Lynch, Patrolmen's Benevolent Association; Michael Palladino, Detectives Endowment Association; Edward D. Mullins, Sergeants Benevolent Association; Louis Turco, Lieutenants Benevolent Association; and, Roy T. Richter, Captains Endowment Association.
New York City Fire Department Pension Fund: Janice Emery, Mayor's Representative; New York City Fire Commissioner Salvatore Cassano (Chair); New York City Finance Commissioner David Frankel; Stephen Cassidy, President, James Slevin, Vice President, Robert Straub, Treasurer, and John Kelly, Brooklyn Representative and Chair, Uniformed Firefighters Association of Greater New York; Patrick Reynolds, Captains' Rep.; James Lemonda, Chiefs' Rep., and James J. McGowan, Lieutenants' Rep., Uniformed Fire Officers Association; and, Sean O'Connor, Marine Engineers Association.
Board of Education Retirement System: Schools Chancellor Dennis Walcott; Mayoral: Joseph Lewis, Jeanette Moy, Ian Shapiro, Tino Hernandez, Judy Bergtraum, Allison Rogovin, and Milton Williams; Patrick Sullivan (Manhattan BP), Kelvin Diamond (Brooklyn BP), Dmytro Fedkowskyj (Queens BP), Robert Powell (Bronx BP) and Diane Peruggia (Staten Island BP); and employee members Joseph D'Amico of the IUOE Local 891 and Milagros Rodriguez of District Council 37, Local 372.