PensionDanmark, a major Danish pension fund, announced its decision to sell its Tesla holdings due to the automaker’s resistance to labour union agreements. This move aligns with a broader Nordic push for Tesla to engage in collective bargaining with Swedish mechanics currently on strike since October.
Labour unions’ opposition
Labour unions in Norway and Denmark are set to block transit shipments of Tesla cars destined for the Swedish market. Tesla, however, maintains its policy against collective bargaining, asserting that its employees enjoy competitive terms.
Growing conflict
The Nordic conflict intensifies as PensionDanmark cites Tesla’s unwavering stance on labour agreements and its expanding influence into Denmark. The pension fund, managing assets for over 823,000 Danes, takes a decisive step by placing Tesla on its exclusion list.
Investor frustration
Expressing their limited influence over Tesla’s labour practices, PensionDanmark deems divestment as a strategic move. The fund, overseeing 317.3 billion Danish crowns (USD 45.81 billion) in assets, refrains from disclosing the exact size of its Tesla holdings.
In the face of mounting pressure from Nordic investors and labour unions, Tesla faces a critical juncture that could impact its operations and reputation in the region. The refusal to engage in dialogue with unions may test Tesla’s standing in markets with strong labour movements and socially responsible investment practices.