America's largest trade union organisation has sent a letter protesting Bermuda-based Tyco International's plans to hold its annual general meeting in Bermuda.

The AFL-CIO's letter to Edward D. Breen, the chairman of Tyco was to ask the company “to immediately take an important step to restore investor confidence by holding Tyco's 2003 annual meeting here in the United States”, The New York Times reported yesterday.

The newspaper said the AFL-CIO also planned to ask Tyco to move its headquarters back to the United States so its shareholders will be fully protected by United States corporate law.

Bermuda law does not automatically provide for the enforcement of judgments in shareholder suits in the United States, according to the letter.

A copy of the letter was provided by the AFL-CIO to The New York Times.

Tyco disclosed its plans in its preliminary proxy statement, which was filed last month.

Gary Holmes, a spokesman for Tyco, told The New York Times he could not comment on the letter because the company had not yet received it.

“Our response to issues related to Bermuda is articulated in our proxy statement,” he added.

In the proxy, Tyco said that its board thinks it should periodically evaluate whether to move its headquarters back to the United States.

Because the company has replaced its board with entirely new members after the scandal that led to the resignations last summer of its chief executive, chief financial officer and general counsel, the board has not yet had time to review whether the company should move, according to the proxy statement.