Mexico Controversy Dominates Costco Meeting

from Community Alliance for Global Justice

Costco shareholders concerned about the company's destruction of historic murals and green space in Cuernavaca, Mexico, brought the issue to management's attention at the company's annual meeting in Bellevue recently.

Joined by community leaders who traveled from Cuernavaca, shareholders pointed to rising anger across Mexico over the destruction of exceptional murals, architecturally important buildings, and scores of century-old trees at the site of a planned Costco store. Despite President and CEO Jim Sinegal's claims that Costco has preserved murals and trees, the Cuernavacans offer photographic evidence to the contrary. Photos show trees and topsoil removed from the site - turning an urban arboretum into a gaping hole in the ground - and large murals damaged beyond repair since Costco's purchase of the property.

"Costco management has refused to address our questions, despite promises to do so," said Mary Jo Stansbury, a founding Costco shareholder, addressing Brotman.

After only two shareholder comments on the subject, Sinegal and Chairman Jeff Brotman issued a blanket denial and declared the matter closed. They cut off others waiting to speak, including two citizens of Cuernavaca who traveled to Washington to attend the meeting. Cuernavaca community leaders Vera Sisniega and Juan Robert, who held Costco proxies, were prepared to speak but had their microphones cut off. "We are very disappointed to get the same runaround from Costco senior management in the US that we have experienced in Mexico," said Sisniega. "This shows that Costco refuses to dialogue and disrespects our community."

Despite having her microphone cut off, she attempted to deliver her comments directly to the assembled shareholders, as Seattle supporters unfurled a 20-foot banner in front of the stage, reading "Costco, don't destroy Cuernavaca." A short time later, and without answering shareholders' questions, Sinegal and Brotman abruptly adjourned the meeting.

"Widespread media attention in Mexico, and the perception of Costco as an insensitive multinational, creates significant brand risk," said Bruce Herbert, President of Seattle-based Newground Investment Services. "After all, Mexico has the third largest number of Costco stores after the US and Canada, and a population of 110 million." The Cuernavacans have drawn widespread support in Mexico and abroad. "We empathize with the people in Mexico who have been fighting this corporation in their country," said Kathleen Casey, of the local Sierra Club. "The Sierra Club is particularly troubled by the treatment of citizens who oppose the project," says another statement from the organization, referring to beatings and arrests of peaceful protesters in Cuernavaca.

"Costco is based here in our own backyard, and as neighbors we are going to hold them accountable for the destruction they've allowed to happen in Cuernavaca," said Jeremy Simer, Director of Community Alliance for Global Justice. "Costco executives have refused to listen to the people of Cuernavaca, but today they heard them loud and clear."

Contacts: Jeremy Simer, Juan Robert, Vera Sisniega: 206-405-4600, 206-714-3095 (cell), Kathleen Casey: 206-378-0114 x 305, 206-356-2925 (cell), Bruce Herbert: 206-522-1944, Frente Civico Pro Casino de la Selva (Cuernavaca): www.procasino.org.

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