Bemidji lumber mill loses major certification – BusinessNorth

Report on Workplace Harassment Allegations and Sustainable Development Goal Implications at PotlatchDeltic

Executive Summary

PotlatchDeltic Land and Lumber is facing significant repercussions, including the termination of its Forest Stewardship Council (FSC) certification for all its mills, following allegations of a workplace culture permissive of sexual harassment. Two lawsuits filed by employees at the Bemidji plant detail claims of persistent harassment by a supervisor. This situation highlights a severe misalignment with key United Nations Sustainable Development Goals (SDGs), particularly those concerning gender equality, decent work, and responsible production. The loss of the FSC certification, a critical standard for sustainable and ethical sourcing, underscores the direct link between social responsibility and corporate viability.

Legal Proceedings and Allegations

Two separate lawsuits have been filed in Beltrami County District Court against PotlatchDeltic and one of its operators, Calvin Kurtz. The plaintiffs, current and former female employees, are seeking damages exceeding $50,000.

Details of the Complaints

• The lawsuits allege a continuous pattern of sexual harassment by Mr. Kurtz against female employees under his supervision.
• Specific allegations include unsolicited requests to socialize, sending explicit text and Snapchat messages, non-consensual physical contact, and making inappropriate comments about employees’ appearance.
• The complaints state that multiple women had reported Mr. Kurtz’s conduct to management, but no effective action was taken to terminate his employment or end the harassment.
• In formal responses to the court, Mr. Kurtz has denied all allegations of wrongdoing.

Impact on Corporate Certification and SDG Alignment

The allegations have led to the termination of PotlatchDeltic’s FSC certification for its mills, effective November 1. This action was taken by Bureau Veritas Certification Holding, the international body that investigates complaints against FSC certificate holders, following an investigation into discriminatory practices at the company.

Violation of FSC Principles and SDG 12

The Forest Stewardship Council certifies that wood products originate from responsibly managed forests that provide environmental, social, and economic benefits. The investigation concluded that the alleged workplace conditions represented a direct threat to the credibility of the FSC.

• This failure to uphold the social tenets of responsible management directly contravenes the principles of SDG 12: Responsible Consumption and Production, which promotes sustainable and ethical supply chains.
• Major retailers like Lowe’s and The Home Depot rely on FSC certification to meet their own corporate sustainability goals, potentially impacting PotlatchDeltic’s market access.

Failure to Uphold SDG 5 and SDG 8

The core of the allegations points to a fundamental failure to ensure a safe and equitable workplace, which is a direct violation of multiple SDGs.

1. SDG 5: Gender Equality: The alleged pattern of sexual harassment and the failure of management to address it represent a severe breach of the goal to end all forms of discrimination and violence against women.
2. SDG 8: Decent Work and Economic Growth: The situation demonstrates a failure to protect labor rights and promote a safe and secure working environment for all workers, a key target of this goal.

Corporate Developments

In October, PotlatchDeltic announced a planned merger with Rayonier, another major international wood products company. The merger aims to create a combined entity with approximately 4.2 million acres of timberland. The ongoing legal issues and loss of certification present a significant social governance challenge for the newly combined company.

SDGs Addressed in the Article

• SDG 5: Gender Equality
• SDG 8: Decent Work and Economic Growth
• SDG 12: Responsible Consumption and Production
• SDG 16: Peace, Justice and Strong Institutions

Specific SDG Targets Identified

1. SDG 5: Gender Equality

   • Target 5.1: End all forms of discrimination against all women and girls everywhere. The article details allegations of sexual harassment against female employees, which is a form of gender-based discrimination in the workplace. The complaint states that a supervisor, Calvin Kurtz, “commenced a pattern of sexually harassing conduct toward women employees under his supervision.”
   • Target 5.2: Eliminate all forms of violence against all women and girls in the public and private spheres. The alleged actions, including unwanted physical contact (“placed his hands on women coworker’s bodies without consent”) and sending explicit messages, constitute workplace violence and harassment, which this target aims to eliminate.

2. SDG 8: Decent Work and Economic Growth

   • Target 8.8: Protect labour rights and promote safe and secure working environments for all workers. The core issue is the failure to provide a safe working environment for female employees. The article highlights that despite “multiple complaints from other women,” the alleged harasser “was not terminated and was allowed to continue to work the floor and harass plaintiff,” indicating a direct violation of workers’ rights to a secure and non-hostile workplace.

3. SDG 12: Responsible Consumption and Production

   • Target 12.6: Encourage companies, especially large and transnational companies, to adopt sustainable practices. The article focuses on the termination of PotlatchDeltic’s Forest Stewardship Council (FSC) certification. This certification ensures that wood products “come from responsibly managed forests that provide environmental, social and economic benefits.” The loss of the certificate due to social issues (workplace harassment) demonstrates a failure to adhere to sustainable practices, impacting the company’s ability to sell to major brands like Lowe’s and The Home Depot, which rely on such certifications for their supply chains.

4. SDG 16: Peace, Justice and Strong Institutions

   • Target 16.3: Promote the rule of law at the national and international levels and ensure equal access to justice for all. The two women filing lawsuits in Beltrami County District Court are seeking legal recourse and damages, which is a direct application of this target’s goal of ensuring access to justice through the legal system.
   • Target 16.6: Develop effective, accountable and transparent institutions at all levels. The article implies a failure of PotlatchDeltic’s internal institutions. The statement that “In spite of plaintiff’s multiple complaints… defendant Kurtz was not terminated” suggests that the company’s internal grievance and accountability mechanisms were ineffective in addressing the harassment claims.

Indicators for Measuring Progress

1. SDG 5: Gender Equality

   • Implied Indicator: Number of reported cases and legal actions related to workplace sexual harassment. The article explicitly mentions “Two lawsuits from current and former Bemidji PotlatchDeltic employees” and “multiple other women have complained to management.” These numbers serve as a direct measure of the prevalence of gender-based discrimination and violence in this specific workplace.

2. SDG 8: Decent Work and Economic Growth

   • Implied Indicator: Existence and enforcement of policies to protect workers from harassment. The article implies a lack of enforcement. The fact that complaints from multiple women did not lead to the termination of the alleged harasser indicates that company policies for ensuring a safe work environment were not being effectively implemented or enforced.

3. SDG 12: Responsible Consumption and Production

   • Explicit Indicator: Status of third-party sustainability certifications. The article directly states that PotlatchDeltic Land and Lumber’s “Forest Stewardship Council certification was terminated as of Nov. 1, in response to claims of workplace harassment.” The presence or absence of this certification is a clear, measurable indicator of the company’s adherence to internationally recognized sustainable and responsible production standards.

4. SDG 16: Peace, Justice and Strong Institutions

   • Implied Indicator: Number of unresolved grievances within an organization. The article’s reference to “multiple complaints” that did not result in the termination of the employee in question serves as an indicator of the ineffectiveness of the company’s internal justice and accountability mechanisms. The filing of lawsuits is a further indicator that internal channels for resolution failed.

Summary Table of SDGs, Targets, and Indicators

Source: businessnorth.com