Instead,the organisation is pushing for worker rights and a union voice to be added to the Ethical Sourcing Policy,which would include union-led complaint resolution and labour rights education for workers.
It is also asking for supplier accreditation and compliance to be determined by multiple parties rather than just third-party auditors.
Coles continues to advocate for policies that have repeatedly been shown to be not fit-for-purpose.
Katie Hepworth,director of workers rights,ACCR
In a statement to the market after close of trading on Wednesday,Coles acknowledged it had received the resolution and said the board would post its voting recommendation to shareholders later this month.
The ACCR wants Coles to bring its policy closer to Woolworths',which faced a similar shareholder resolution last year to ensure trade union involvement in supply chain compliance.
Woolworths'also primarily relies on third-parties to audit its suppliers,including Sedex which audited 34 per cent of its moderate-to-priority risk suppliers and 60 per cent of its highest risk horticultural suppliers last financial year.
However,while Woolworths did not agree to embed a union voice and shareholders voted the proposal down,it has signed an agreement with the National Union of Workers (NUW) to engage in quarterly meetings and provide the union with an avenue to raise worker grievances. The ACCR is not proposing any resolution against Woolworths this year.
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"Coles continues to advocate for policies that have repeatedly been shown to be not fit-for-purpose and unable to identify,let alone resolve,the types of labour rights risks and illegality evidenced in Australian fresh food supply chains,"Katie Hepworth,director of workers rights at the ACCR said.
Jenn Morris,chief executive of Minderoo's Walk Free initiative against modern slavery,said while it welcomed shareholders putting focus on ethics within supply chains,it remains a complex issue to fix within large organisations.
"Walk Free encourages companies to identify risks in their industries,commission independent audits to identify any issues,and work with their suppliers and employees to drive changes that prevent exploitation and protect human rights,"she said.
If the resolution is accepted by Coles,it will be heard at the company's Annual General Meeting on November 13,howeverdue to a quirk in Australian legislation, the group will first have to pass a resolution to amend the company's constitution before the second resolution can be voted on.
Constitution changes require 75 per cent shareholder approval and therefore are rarely passed.