[1/3]A general view of a Tesla store in Porsgrunn, Norway, December 24, 2021. Picture taken December 24, 2021. Portal/Victoria Klesty/File Photo Acquire LICENSE RIGHTS
OSLO, Dec 9 (Portal) – U.S. automaker Tesla Inc (TSLA.O) should respect basic labor rights including collective bargaining, Norway’s $1.5 trillion sovereign wealth fund said, adding that it would sell its shares in the company keep and try to influence politics time.
The electric vehicle maker is facing backlash from unions and some pension funds in the Nordic region over its refusal to meet a demand from Swedish mechanics for collective bargaining rights on wages and other conditions.
Norges Bank Investment Management (NBIM), the world’s largest stock market investor and seventh-largest Tesla shareholder with a 0.88% stake worth $6.8 billion, said on Saturday that unlike some other funds, it has “no “Plans” to sell his shares in the company.
“We expect the companies we invest in to respect fundamental human rights, including labor rights,” NBIM said in a statement to Portal when asked about Tesla’s conflict with its Swedish workers.
“In 2022, we supported a shareholder proposal at Tesla that called on the company to adopt a policy to respect the right to freedom of association,” it said.
The 2022 proposal, which was supported by 32% of voters according to NBIM, called for Tesla to adopt a policy of respecting labor rights such as freedom of association and collective bargaining. The company’s board recommended a “no” vote.
Tesla, which revolutionized the electric car market, has managed to avoid collective bargaining agreements with its roughly 127,000 workers, and CEO Elon Musk has been vocal about his opposition to unions.
Tesla did not respond to a request for comment.
The company said its Swedish employees have conditions as good or better than the union demands.
PensionDanmark, one of Denmark’s largest pension funds, announced on Thursday that it had sold its $69 million stake in Tesla, while fund manager Paedagogernes Pension said it would follow suit and sell its $35 million stake Sell US dollars.
NBIM said its expectations are based on international standards set by the International Labor Organization (ILO) and global human rights conventions.
In its expectations documents, NBIM says companies in which it invests “should work transparently with workers and their representatives, such as unions, in developing and implementing policies and practices.”
‘OBSERVATION LIST’
Denmark’s AcademicPension said on Friday it would maintain its $18 million stake in Tesla, but added that it was keeping the automaker on a watchlist and expected the parties to find a satisfactory solution to the ongoing dispute.
“It seems that Tesla management has not realized that appropriate working conditions in companies create more value and less risk,” said Jens Munch Holst, CEO of AcademicPension.
Sweden’s state pension fund AP1, which held a $187 million stake at the end of June, said its preferred course of action was to have a dialogue with Tesla rather than sell its shares.
Another Swedish fund, AP4, which holds a $114 million Tesla stake, said the labor dispute did not constitute grounds for exclusion as a holding.
The New York State Common Retirement Fund said it has “long been concerned” about Tesla’s labor problems.
“We have filed multiple shareholder proposals and written letters seeking improvements to Tesla’s labor policies and parties,” it said in a statement. “A sale is currently not being considered.”
Reporting by Terje Solsvik in Oslo, additional reporting by Jacob Gronholt-Pedersen in Copenhagen, Marie Mannes in Stockholm and Jaspreet Singh in Bengaluru; Edited by Kirsten Donovan, Elaine Hardcastle and Mark Potter
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Originally posted 2023-12-09 13:36:14.