Supporting Statement: As North America's largest manager of private residential communities, FirstService relies on its large workforce across Canada and the U.S. to provide services for its clients. However, the Company’s labour-related policies and practices, including media reports of alleged efforts to stifle legally protected union activity,[1] may threaten its future growth and long-term value creation. These risks are magnified because FirstService has no publicly available human rights policy.

Companies that fail to respect labour and human rights are exposed to material reputational, legal, and operational risks that can harm their financial performance and long-term sustainability. Investors are appropriately sensitive to these risks. In recent years, shareholders have submitted proposals challenging a range of unfair employment practices. Between 2019 and 2022, such proposals received an average over 40% of votes cast.

Investors increasingly expect companies to demonstrate respect for human rights by adopting policies that demonstrate their commitment to internationally recognized human rights standards that apply wherever they operate.[2] Freedom of association and collective bargaining are human rights that are considered “enabling rights,” which are essential prerequisites for many other basic labour rights, such as fair wages, non-discrimination, and freedom from child labour. FirstService should adopt a Policy with a stated commitment to human rights, including specific commitments to the widely recognized and adopted UNGP framework and ILO core labour standards.[3]

FirstService has come under scrutiny for its reported use of non-compete agreements, a concern to investors, since the U.S. Federal Trade Commission (“FTC”) has said that noncompete restrictions harm workers. Moreover, investors remain concerned about the Company’s approach to workers’ fundamental rights based on the issues raised in the 2023 media reports. [4]