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Article

11 May 2016

Author:
U.S. National Contact Point for the OECD Guidelines for Multinational Enterprises

Specific Instance between Intl. Union of Food, Agriculture, Hotel, Restaurant, Catering, Tobacco & Allied Workers' Associations (IUF) and Starwood Hotels & Resorts for conduct in Maldives & Ethiopia

The USNCP offered mediation to the parties...[which] resulted in an agreement... [The parties] authorized public dissemination of the following joint statement:

...[The] parties have reached full resolution of the concerns raised by IUF pertaining to the discharge of workers and the collective bargaining process at the Sheraton Addis Ababa hotel. In regards to Sheraton Maldives, the parties shall reconvene at an agreed location to continue to explore options in good faith to resolve the matter... As a follow-up measure...[in] one year...parties will be asked to separately submit a confidential response to the USNCP on the status of the agreement...

IUF claimed that...two of its Sheraton-branded properties, the Sheraton Maldives Full Moon Resorts & Spa in Maldives (Sheraton Maldives) and the Sheraton Addis Hotel in Addis Ababa, Ethiopia (Sheraton Addis) allegedly failed to recognize legitimate trade union organizations, failed to negotiate with those unions, and undertook mass employee terminations in order to intimidate workers and prevent them from exercising their rights...

The company...[stated] that it was undertaking an internal review...[and subsequently] reported that initial investigations were complete and that the company had determined that Starwood had not violated OECD Guidelines...[According to Starwood,] Sheraton Maldives [and Sheraton Addis both] did not carry out a mass employee termination to intimidate workers or prevent them from exercising their rights...