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UNI Global Union is urging potential investors in Prosegur to be wary of the multinational’s poor track record in human and worker rights in both India and Latin America.

The private security giant, Prosegur, headquartered in Spain, is preparing for an Initial Public Offer for its Cash in Transit division by releasing new shares on the capital market by March 16th.

The company was recently accused of violations of human rights and labour laws in India and Latin America. The global trade union federation UNI Global Union filed a complaint at the National Contact Point of the OECD in Spain:

http://www.uniglobalunion.org/sites/default/files/files/news/uni_global_...

The allegations in India are based on research by Indian labour lawyer Vinod Shetty in cooperation with local trade unions and workers’ committees. The main problem with SIS-Prosegur is the lack of labour, contracts and payslips, structural overtime and evasion of the legal minimum wage. 

In the recently published IPO prospectus the company states:

"The company’s reputation could be damaged as a consequence of, amongst others, any complaints by clients, employees, unions or third parties (in particular, the long-standing campaign by UNI Global Union alleging unfair labour practices by the Prosegur Group, and specifically by the Company in Latin America and India.)"

UNI has complained that Prosegur continues to violate the rights of employees in India and Latin America and does not have a due diligence process which identifies and avoids the risks of human rights violations in place. Such a due diligence process is a requirement of the OECD Guidelines and the UN Guiding Principles for Multinational Companies. 

UNI Global Union Deputy General Secretary, Christy Hoffman said, “There is no need for investors to accept a risk that Prosegur’s faulty management systems will continue to be the subject of global criticism.  There is no excuse for Prosegur’s refusal to enter into a mediated solution.”   

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