Resolved: That the board of directors report to shareholders, at reasonable cost and omitting proprietary information, on actions the Company is taking to uphold decent work practices in the Company’s operations, including:

1. Information on the Company’s overall approach and board-level oversight of human capital management in the context of emerging workforce-related risks; and
2. Comprehensive workforce metrics that effectively demonstrate the success and challenges the Company faces in its management of human capital.

Supporting Statement

The COVID-19 pandemic has caused unprecedented challenges to the economy, workers, communities and businesses. The virus has exposed how vulnerable and unprepared many companies were to address major business disruptions and protect their employees’ health and financial security.

In the midst of the COVID-19 crisis, the Company has faced widespread public criticism for failing to protect residents and staff. Between February 2020 and November 10, 2020, at least 108 residents or employees of Chartwell homes have died due to  COVID-19.  As a result, the Company is exposed to significant reputational, regulatory and legal risks. 

Poor working conditions in long-term care facilities - including low wages, insufficient benefits and shortages of personal protective equipment - have been linked to the abhorrent conditions and shocking death toll in many Canadian homes. Many observers have connected the lack of full-time positions in long term care as one factor in the spread of COVID. Many employees are even more at risk of spreading the virus since they navigate multiple part-time jobs to make ends meet.

Despite the public and investors’ growing concerns, the Company has not formalized roles and responsibilities for human capital management at the board level. Chartwell’s disclosure falls short in providing material information on its workforce, including comprehensive metrics, that allow investors to assess the effectiveness of the Company’s human capital management approach and the robustness of its board’s oversight.

Demand for better corporate disclosure on human capital management is growing amongst investors and regulators. A company’s disclosure should reflect the importance of human capital in its strategy and operations. This is particularly material in long-term care residences, where an employee’s training, conduct and efficiency are vital to protect residents’ decent living conditions, upholding a high standard of care, and protecting investors’ value.  

The Company and shareholders would both benefit from a more robust board oversight and greater transparency of human capital management as out set above.

We urge you to support this proposal.

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