Marriott International Shareholders Force Company to Divest from Burma; ISS to Support Hotel Employees Restaurant Employees International Union's Push for Global Labor Standards

Business Wire, May 1, 2002

Business Editors

WASHINGTON--(BUSINESS WIRE)--May 1, 2002

Today, the Hotel Employees and Restaurant Employees International Union (HERE) and the AFL-CIO called on Marriott International (NYSE:MAR) to expand on its recent claim to stop supporting the military dictatorship in Burma by adopting a workplace code of conduct.

The code would be based on the International Labor Organization's (ILO's) conventions on workplace human rights.

HERE filed a shareholder proposal for consideration at Marriott's May 3, 2002 annual meeting requesting that the company adopt a global workplace code of conduct, and the AFL-CIO submitted a proposal requesting that Marriott review its operations in Burma, a military dictatorship widely condemned for human rights abuses.

Marriott sought to exclude the proposals from the company's proxy statement, but was overruled by the Securities & Exchange Commission.

"Marriott has now informed us that the company will end all business ties with Burma, but working people investing in the hotel company want to be assured that their investment does not prop up a military regime, which disregards basic human rights. We urge the company to adopt a global labor standard that respects basic human rights in all countries," said Bill Patterson, Director of the AFL-CIO Office of Investment.

In a letter to the AFL-CIO, Marriott disclosed that the company will "end business ties with the Republic of Myanmar (formerly known as Burma). We persuaded the [hotel] owner's representative to allow us to terminate the management agreement. We removed the Renaissance brand flags so that neither hotel is operated under one of Marriott's brand names," the Marriott letter said.

"Our members are gratified that Marriott has committed to stop supporting the military dictatorship in Burma by doing business in the country," said Chris Bohner, Senior Research Analyst at HERE. HERE, a shareholder of Marriott, represents thousands of workers at the company's U.S. hotels. "But Marriott still has a long way to go towards improving its corporate responsibility guidelines," added Bohner.

In 2000, Human Rights Watch cited Marriott's labor dispute at the San Francisco Marriott Hotel as a case study of violations of workers' freedom of association in the United States. In addition, Marriott operates in many countries where basic labor rights are not adequately protected.

HERE is seeking shareholder support for a proposal requesting that Marriott adopt a workplace code of conduct based on the ILO's conventions on workplace human rights.

In a major boost for the initiative, Institutional Shareholder Services (ISS) -- the leading provider of proxy voting and corporate governance services - has recommended that shareholders vote for the proposal, citing "recent concerns regarding the company's labor practices." ISS noted that Marriott "could benefit from the adoption of a formal policy that seeks to create and maintain safe and quality working conditions for its employees by outlining clear protections of rights for members of its workforce."

CalPERS, the largest pension fund in the world with more than $150 billion in total assets, has also disclosed that it will support HERE's proposal.

The AFL-CIO represents 13 million working men and women who participate in the capital markets as investors through defined benefit and defined contribution plans, as well as through mutual funds and individual accounts.

The Hotel Employees and Restaurant Employees International Union (HERE) represents approximately 300,000 members across the United States and Canada in the hospitality industry.