Tesla’s electric car product is facing negative reactions in the northern region of unions and some pension funds due to its refusal to accept demands from Swedish technicians regarding collective bargaining rights that include wages and other conditions.
Norwegian Wealth Fund Speaks
The Norwegian Government Pension Fund Global (NBIM), the largest investor in the stock market worldwide and the seventh largest shareholder in Tesla with a 0.88% stake valued at $6.8 billion, stated that it has no “plans” to divest its stake in the company, unlike some other funds.
Norwegian Wealth Fund Expectations
The Norwegian wealth fund clarified that its expectations are based on international standards set by the International Labour Organization and global agreements in the field of human rights. In its expectation documents, the Norwegian wealth fund states that companies in which it invests “must engage with workers and their representatives, such as trade unions,” transparently when developing and implementing policies and practices.
Other Reactions
Some major pension funds in Denmark have decided to halt their investments in Tesla due to the ongoing dispute, while others have chosen to monitor the situation and retain their stakes in the company. Swedish pension funds have expressed a desire to maintain dialogue with Tesla instead of selling their shares. The New York State Common Retirement Fund has voiced its long-standing concerns about labor issues at Tesla and confirmed that it is not considering divesting its stake at this time.
Conclusion
Tesla is facing pressure from unions and pension funds due to its refusal to acknowledge workers’ collective bargaining rights. The Norwegian wealth fund is urging Tesla to respect fundamental labor rights, including collective bargaining, while also intending to retain its stake in the company and seek to influence future policies. The Norwegian wealth fund considers its expectations to be based on international human rights and labor rights standards. Pressure on Tesla to recognize union rights and engage in collective bargaining with workers is expected to continue.
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