L.L. 1990/049

Enactment date: 7/25/1990

Int. No. 458-A

By the Speaker (Council Member Vallone) and Council Members Gerges, Crispino, Pinkett, Williams, Eisland, Fields, Robles and Albanese (by request of the Mayor); also Council Members Alter, Berman, Castaneira-Colon, Dear, DeMarco, DiBrienza, Dryfoos, Eldridge, Foster, Friedlander, Greitzer, Harrison, Horwitz, Lisa, Katzman, Maloney, McCaffrey, Michels, Povman, Rivera, Spigner, Ward and Wooten (Passed under a message of necessity from the Mayor)

A Local Law to amend the New York city charter in relation to the depositing of city funds in banks doing business in South Africa, and to amend the administrative code of the city of New York, in relation to city contracts with entities that do business in South Africa

Be it enacted by the Council as follows:

Section 1. Declaration of legislative intent and findings. In 1985 the city of New York, as an expression of moral outrage at the South African government's relentless enforcement of apartheid, adopted a policy of restricting its business with banks and companies doing business in South Africa. In 1986, finding that the repression of black South Africans by the South African government had worsened, the city adopted stronger measures to express New Yorkers' deep abhorrence for apartheid.

The council finds that these measures, together with the divestiture policies of the city's pensions systems, similar measures adopted by private institutions, and state and local governments across our country, sanctions against South Africa adopted by our federal government and other nations, and above all the relentless struggle and untold sacrifices of South Africans fighting against racism, have had a significant impact on the South African government.

The city rejoices in the release of Nelson Mandela after more than a quarter century of political imprisonment, and celebrates the release of other great leaders in the anti-apartheid struggle, including Walter Sisulu, Ahmed Kathrada, Andrew Mlangeni, Elias Motsoaledi, Raymond Mhlaba, Wilton Mkwayi, Oscar Mpetha, and Jafta Masemola. Yet the city and the world do not lose sight of the fact that thousands of political prisoners remain in detention without recognition for their most fundamental civil rights. The city welcomes the unbanning of many political organizations, but strongly condemns the violence with which the South African government continues to react against peaceful demonstrations. Despite the few positive steps that the South African government has taken within recent months, it continues to commit heinous crimes against humanity, subjugating, brutalizing and degrading millions of its own people.

In view of the developments in the Republic of South Africa, the council finds it appropriate to strengthen the provisions of the city charter and the administrative code applicable to depository banks and city contracts with companies doing business in South Africa. As an expression of our moral concerns as to the conduct of the city's business and financial affairs, this local law provides for the city's depository banks and contractors to certify that they have withdrawn or are actively engaged in withdrawing from South Africa, and do not have any nonequity ties with businesses there. In addition, because of the significant contribution that banks can make toward forcing the South African government to face the human costs of its policies, this law calls on financial institutions to end correspondent banking relationships with South Africa and to require strict terms for the repayment of an outstanding loans.

The council is concerned about reports from South African trade unions that many companies are effecting withdrawal plans by unilaterally terminating duly negotiated collective bargaining agreements, withholding pension and other benefit payments, and suspending union recognition agreements. The council condemns these practices as an affront to the efforts by South African trade unions to protect and advance the basic human rights of South African workers. Responsible divestment can and should uphold fair labor practices as companies withdraw.

Accordingly, the city will monitor whether companies effecting withdrawal give advance notification to all South African employees and their representative employee organizations of termination of investment or withdrawal of operations not less than six months prior to such termination, and engage in good faith negotiations with representative trade unions regarding the terms of termination, including, but not limited to: pension benefits, the relocation of employees, the continuation of union recognition agreements, severance pay, and the acquisition of the terminated business or business assets by employees or representative worker organizations.

The city heralds the new independence of the Republic of Namibia and the inauguration of its president, Sam Nujoma, on March twenty-first, nineteen hundred ninety, a day for which, in Mr. Nujoma's words, "tens of thousands of Namibian patriots laid down their lives, shed their precious blood, suffered imprisonment and a difficult life in exile." Now that this last colony of Africa has been liberated, due to the heroism and tenacity of its people, its new struggle for national reconciliation, reconstruction and prosperity begins. The long-awaited freedom of Namibia having at last arrived, the council finds it appropriate to no longer ask that city contractors refrain from doing business in Namibia, and instead to encourage American businesses to invest in Namibia, and to provide the full range of resources that will be required to develop the enormous economic potential of that new nation.

This local law responds to the call of the leaders of the anti-apartheid movement that the worldwide community intensify its efforts to persuade the South African government to negotiate toward the quick establishment of a truly democratic and non-racial society recognizing the principle of "one person, one vote." The City urges all members of the private and public sectors – local, state, national, and international – to adopt similar measures to hasten the fall of apartheid.

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[Consolidated provisions are not included in this Appendix A]

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§ 12. Notwithstanding any provision of section 6-115 of the administrative code or any contract entered into pursuant to such section, any person who has stipulated that it would comply with the anti-apartheid contract provisions set forth in such section shall not be deemed to be in violation of such section or in breach of such contract on the basis of any lawful business such person may have conducted in Namibia on or after March 21, 1990.

§ 13. If any provision of this local law or the application thereof is held invalid, the remainder of this local law and the application thereof to other persons or circumstances shall not be affected by such holding and shall remain in full force and effect.

§ 14.   a.   Sections 12 and 13 of this local law shall take effect immediately.

   b.   Section 10 of this local law shall take effect immediately and shall apply to contracts for which a request for bids or proposals is issued on and after the effective date.

   c.   Sections 2, 3, 4, 7 and 8 of this local law shall take effect on September 1, 1990.

   d.   Sections 5, 6, 9, and 11 of this local law shall take effect on September 1, 1990 and shall apply to contracts for which a request for bids or proposals is issued on and after such date.

   e.   On and after the date of enactment of this local law the city agencies may take any actions necessary for its implementation, including but not limited to the adoption of any necessary rules.