(WASHINGTON) – Leading proxy advisory firms Glass Lewis and Institutional Shareholder Services are recommending XPO Logistics, Inc. (NYSE:XPO) investors support a Teamster-filed shareholder resolution that seeks better disclosure of the company’s sustainability practices, including its workplace conditions. The company will hold its annual shareholder meeting on May 17, in Rye Brook, N.Y.
The recommendation follows accusations that XPO, one of the world’s largest logistic companies, has turned a blind eye to sexual harassment within its operations. Last month, current and former female workers at a facility that XPO operates for Verizon in Memphis, Tenn. filed complaints with the Equal Employment Opportunity Commission (EEOC) alleging unwanted sexual advances and retaliation for reporting harassment to their superiors. Verizon is now investigating the Memphis workers’ claims.
At the same time, XPO has come under political and media scrutiny for its misclassification of workers as independent contractors in its port drayage business in Southern California – a practice some have called modern indentured servitude. A group of United States Senators have sent letters to major retailers who hire XPO and other contractors, urging the retailers to take responsibility for the labor conditions of their port trucking contractors, while California State Senator Ricardo Lara recently introduced a bill in the state legislature that would hold big box retailers responsible for labor abuses by port trucking companies hauling their goods.
“Over the past 12 months, it has become abundantly clear to investors that XPO’s workplace practices pose reputational, operational and legal risks to long-term shareholder value,” said General Secretary-Treasurer Ken Hall “Better disclosure not only informs investors of the risks they are assuming but helps keep management honest.”
In 2017, more than 35 percent of the independent shares were cast for this proposal.
Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico. Visit www.teamster.org for more information. Follow us on Twitter @Teamsters and “like” us on Facebook at www.facebook.com/teamsters.