Sweden’s AP7 has co-filed a shareholder resolution, led by Nia Impact Capital, at Tesla’s AGM.

The resolution, which is being brought to the car manufacturer’s AGM for the third consecutive year, seeks to strengthen workers’ rights; it gained 27 per cent of votes in 2020 and 45 per cent of votes in 2021.

The resolution (Proposal #9) asks Tesla to report on the impact of the use of mandatory arbitration for resolving disputes between workers and Tesla as an employer. Tesla should evaluate the effects on Tesla’s brand, employees and workplace culture.

Arbitration is an out-of-court method. When disputes are handled through arbitration the underlying facts and the outcome of the case often remain secret. This prevents other employees from learning about and acting on shared concerns.

A number of companies have already stopped requiring employees to arbitrate discrimination claims and legislators have looked to ban or restrict the use of such provisions when harassment or discrimination has occurred.

Commenting, AP7 head of ESG, Charlotta Dawidowski Sydstrand, said: “AP7 has been in dialogue with Tesla for several years regarding concerns over workers’ rights. Given limited progress in those discussions, AP7 has chosen to actively support this shareholder resolution which aims at strengthening employee rights and improving transparency on disputes such as discrimination and harassment.”

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