1. WHEREAS, Western Union Charges the highest transactions fees and gives one
of the lowest exchanges rates in the industry that will generate more than $20
billion in annual revenues in 2007, with profit margins for companies like
Western union as high as 30%: and
According to the World Bank, the remittance market will generate more than $15
billion in annual revenues in 2006, with profit margins for companies like western
Union as high as 30%
Migrant workers remittance projected to reach $260 billion globally in 2006,
constitute the second largest source of external funding for developing countries after
Foreign Direct Investments (i.e. foreign aid) and are considered an economic life vest
for the families of 200 million international migrants who send money home.
2. WHERAS, Western Union depends on immigrant’s communities for its enormous
profits yet it ignores the need for reinvesting into those communities. Since
starting its own foundation in 2000, Western Unions has spent 41 cents ($.41)
for every $100of corporate profit - lagging far behind Wal-Mart ($2.30) and
Ben & Jerry’s ($7.50). None of these grants were made to any Rhode Island
immigrants neighborhoods: and
3. WHERAS, The board of directors of Western Union have refused to respond to
demand of the TIGRA campaign to lower fees, set a fair exchange rate, and
commit to community reinvestment despite thousands of postcards, emails, phone
call, and direct face to face appeals since September 2006: and
4. WHEREAS, TIGRA and the campaign deflects the aspirations of close to 200
immigrants organizations in the United States working in diverse communities
from Mexico, Dominican Republic, Somalia, Filipino, El Salvador, Honduras,
Brazil, Bosnia, Liberia, and many more have called for a boycott of Western
Union services until the company agrees to their demands: and
5. WHERAS, an immigrant worker earning minimum wages must work a full week
to pay off a year’s worth of Western Union fees and commissions. Analysis
provide by Transnational Institute for Grassroots Research and Action (TIGRA)
indicates that although an individual money transfer costs Western Union less
than$5 (dropping to $3.27 for second and subsequent transaction), the company
charges more than $20 in fees; and
TIGRA studies have determine that Western Union consistently charges 10-15%
more its closest competitors in high fees and low exchange rates; and
TIGRA studies further indicates that Western Union’s community reinvestment
has increase only to $0.49 per $100 in profit from $0.41, far below what
companies like Wal-Mart ($2.30) and Ben and Jerry’s ($7.50) reinvest in
communities; and
6. WHEREAS, many of the organizations Western Union has chosen to partner with
through its community foundations have little connection to low – and moderate
income immigrants communities in the United States that are bulk of Western
Union’s customer base: and
The federal Community Reinvestment Act mandates banks to sign community
benefits agreements, but no such law exists for the money transfer industry; and
As a matter of local public policy, it is appropriate to encourage Western Union
and other check cashing and money remittance companies to deal directly with
community organizations that intimately understand the needs and aspirations
(and development priorities) of the local communities which they do business;
and
TIGRA has submitted a shareholder resolution to force Western Union to develop
and implement a written policy for community reinvestment that would prioritize
building social capital in immigrant communities.
NOW, THEREFOR, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF MAYWOOD: THE NATIONAL LATINO CONGRESS
SECTION 1. Fully supports the effort to encourage Western Union and other
check cashing and money remittance business to (i) increase the amount of
community reinvestment in the communities they serve; and (ii) to develop and
implement written policies for community reinvestment that would assist in
building social capital in the communities they serve, similar to the community
reinvestment agreement required of banks.
SECTION 2. Effective date. This resolution shall become effective upon its
adoption.