BlueScope Workers Take Stock

The Australian Workers' Union is putting in a bid to improve corporate governance at the company fighting collective bargaining agreements while dishing out 30% pay rises to executives on seven figure paypackets in the last year alone.

AWU National Secretary Bill Shorten said the changes would prevent executive remuneration abuses and ensure improved company practices in the long term.

"This is a company built on the blood, sweat and tears of steelworkers since 1912," says Shorten. "The AWU represents thousands of BlueScope steelworkers around Australia, and most of them are also shareholders in the company. They have a double interest in ensuring the long-term future of BlueScope and deserve to have a voice in the company's decision making processes

The AWU has proposed five changes to the BlueScope Constitution to be voted on at the company's Annual General Meeting in Sydney on October 19.

"The AWU aims to involve BlueScope employee shareholders in legitimate debate about corporate governance. We are encouraging BlueScope workers who hold shares to attend the AGM or vote on good corporate governance."

The AWU proposals will limit non-executive directors' terms to 10 years; cap "golden parachute" payouts to departing executives, prevents directors holding more than four public company directorships or two chairmanships; and require shareholder approval of executive salaries in excess of 20 times average employee earnings.

"Limiting directors' duties to four public company directorships or two chairmanships is needed to make sure they have the time and energy to properly protect the companies' and shareholders' interests. Capping directors' terms at 10 years is a modest requirement for encouraging real independence among non-executive directors," says Shorten, who predicted that unions in other industries would follow suit in using shareholder activism to advance the interests of employees.

Article from Workers Online.