French catholic NGO CCFD-Terre Solidaire reports that it and two Indian partners, the Tamil Nadu Land Rights Federation and Thervoy Sangam, together with NGOs Sherpa and the CGT, have reported Groupe Michelin to the Organisation for Economic Co-operation and Development for alleged violation of the OECD Guidelines for multinational enterprises.
In a press statement dated July 10, CCFD-Terre Solidaire accused the tiremaker of not taking the needs and heritage of the local Dalit people – better known as the “Untouchable caste” – into adequate consideration while erecting its plant in India’s Tamil Nadu state.
“In November 2009, Michelin acquired lands, near the Thervoy village, from the Tamil Nadu government and started building its largest tire production factory in India,” reports CCFD-Terre Solidaire. “However, the local authorities have made available these lands to the company without any prior consultation with the local villagers… who have been living there for over 200 years.”
The NGO says the Michelin project is part of a development that has changed the local region from rural to industrial and has caused the destruction of 450 hectare-collective forest that surrounded the village and sustained agricultural and pastoral activities, thereby depriving the local people of their main means of livelihood.
“Even if the Tamil Nadu government has not respected the local populations’ rights when it selected this industrial area, it should have been expected from a company such as Michelin, which holds out its social responsibility policy as a model, to be particularly vigilant, in its sphere of influence, in identifying and preventing any risks linked to its settlement and to ensure that it does not benefit from any failures of the Indian government,” the CCFD-Terre Solidaire statement continues, adding that despite the NGO’s “numerous” requests to have work at the site suspended pending a study and consultation with local people, Michelin continued working “in the name of the project economic benefit.”
The complainants seek Michelin’s adherence to the OECD Guidelines for multinational enterprises, and have referred the matter to the OECD National Contact Point. Specifically, the groups are calling for the alleged violations to be noted, for factory construction work to be suspended, and for a “serious and independent” impact study to be carried out. (Tyres & Accessories)
