Swedish pension provider, AMF, is stepping up its stewardship of US firms, Tesla and Apple, over concerns it has with workers’ rights and has not ruled out taking legal action.

In a press statement, AMF head of asset management, Tomas Flodén, explained the provider’s reasons for investing in such firms but also why it is taking action against Apple and Tesla.

“A limited number of companies account for a large part of global profit growth and are therefore important in ensuring that Swedish pension savers receive good pensions. At the same time, companies must step up their efforts to respect workers' rights, and that is why the AMF is acting against Apple and Tesla.”

AMF has investment guidelines on which companies it can buy shares in and how it should influence the companies to move in the right direction in relation to ESG while generating a good return for AMF’s savers over time.

The provider is worried about developments at some of the major US technology companies, particularly around the issue of workers' rights and the right to organise. It is therefore stepping up its efforts at both Apple and Tesla to highlight the flaws it sees and fears.

“The aim is to influence the companies in the right direction, which we believe would contribute to their long-term competitiveness, and by extension to the possibility for Swedish pension savers to get the best possible pensions. As early as March 2023, AMF sent a formal letter to Tesla's management with questions and demands linked to worrying information about a lack of respect for workers' rights,” Flodén said.

“As this has not been dealt with by the company we are now taking further steps. AMF will therefore support a shareholder proposal at Tesla's June 13 meeting that aims to establish the right of workers to organise and requires a collective bargaining policy.”

He added that AMF is also actively working to get other Nordic investors to support the initiative. The proposal states that the freedom of association and the right to bargain collectively are fundamental human rights that are protected by international norms, including the UN Guiding Principles on Business and Human Rights.

“With the support of American rules regarding shareholders' right of access, we are now also taking measures to get access to Apple's and Tesla's internal guidelines for handling employee rights. If it turns out that the documentation we have access to is not at a reasonable level and we judge that these deficiencies can damage the companies, and thus us as shareholders, there is the possibility of taking further formal measures, including legal ones such as claims for compensation for the damage we as owners have suffered,” he said.

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