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CCFD et. al. vs MICHELIN

Case overview

Date filed 10 July 2012
Current status Withdrawn
Issue Multiple violations in construction MICHELIN plant in India
Summary of the case In November 2009, the French company Michelin acquired lands near the Thervoy village from the Tamil Nadu Government and started building the largest tyre factory in India. The complaint alleges that the land was sold to Michelin by local authorities without any prior consultation with the local villagers, a mainly Dalit community who has been living there for over two hundred years. Furthermore, a village near the site is inhabited by indigenous people of Irula ethnicity. The villagers were not consulted nor was their right of free, prior and informed consent respected. Moreover, civil movements objecting to the factory have been severely repressed.

The development of the area around the village has caused the destruction of 450 hectare-collective forest that hosted agricultural and pastoral activities, thus depriving the local people of their main means of livelihood. Eighteen other villages are also directly impacted by the construction of the infrastructure associated with the factors. The complainants furthermore allege that the factory is likely to cause water pollution and have a negative impact on local peoples health.

Despite numerous requests by CCFD-Terre Solidaires that Michelin suspend construction on the factory until appropriate impact studies and consultations with affected stakeholders are conducted, Michelin has carried on the work in the name of the project economic benefit. The complainants now turn to the French NCP to intervene to ensure that Michelin changes its behaviour in accordance with the OECD Guidelines.
Developments/Outcome One year after the complaint was filed, the complainants withdrew the complaint in September 2013, just before the NCP issued its final statement on the case. In its statement, the French NCP
recognized that the impact studies conducted by Michelin were insufficient and that the project had had adverse impacts on local stakeholders. However, the NCP did not believe that the
company had violated the OECDGuidelines.

According to the complainants, who were severely disappointed with the French NCP, serious deficiencies in the French NCP’s procedures and handling of the case led them to withdraw the
case. The complainants are calling for institutional reforms of the NCP to improve its performance and meet its international commitments.

In May 2014 the NCP issued a follow-up statement on the case in which it recognised that MICHELIN has taken a series of measures to implement the recommendations proposed by the NCP in its final stastement. The NCP ceased monitoring of the case in February 2016 after MICHELIN has satisfactorily followed up on all the NCP recommendations proposed.
Relevant OECD Guidelines
Case keywords Health and safety, Labour rights, Human rights, Taxation, Environment, Parallel (legal) proceedings, Bribery / Corruption, NGO-union collaboration

NCP Information

NCP name National Contact Point France
NCP address Rue de Bercy 139 75572 Paris, Cedex 12, France
NCP website www.minefi.gouv.fr/directions_ser
Other NCPs involved

Complainants

NGO
Trade union

Company Information

Company responsible MICHELIN
Company address
Company website
Company in violation MICHELIN
Country of operations India
Other companies involved

Timeline of developments

Date Actor Action Description Document
29 February 2016 National Contact Point France statement The NCP issues its last monitoring statement after all recommendations have been implemented by MICHELIN download pdf (506Kb)  
29 February 2016 National Contact Point France statement Annex to follow up statement by the NCP download pdf (371Kb)  
14 May 2014 National Contact Point France statement The French NCP issues a follow-up statement on the case download pdf (313Kb)  
27 September 2013 National Contact Point France statement The NCP issued its final statement download pdf (513Kb)  
24 September 2013 CCFD-Terre Solidaire case dropped Complainants withdraw case download pdf (1714Kb)  
24 September 2013 CCFD-Terre Solidaire report Complainants issue note on dysfunctioning of French NCP download pdf (359Kb)  
17 June 2013 National Contact Point France accept NCP accepts complaint.  
10 July 2012 CCFD-Terre Solidaire file Case filed at French NCP  

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