AkademikerPension has excluded Wizz Air from its portfolio, selling shares for a total of DKK 22m.

The fund said that “patience ran out” with the Hungarian Airline after it raised concerns about workers’ rights at the airline.

“After dialogue with the company's management, we have in no way been reassured that it will initiate the changes we have requested. Therefore, we see no other way than to exclude the company,” AkademikerPension, director, Jens Munch Holst, said.

AkademikerPension said that investigations have shown that the management of Wizz Air has repeatedly refused to recognise the freedom of association of employees and the right to enter into collective bargaining in Romania, Ukraine, Norway and Italy, among others. Several courts have also ruled that the company has exhibited discriminatory behaviour and fired employees because of their union affiliation.

"Management's behaviour is in conflict with human and labour rights in accordance with, among other things, the UN Guiding Principles on Human Rights and Business. And the risk of being linked to a clear and persistent breach of our responsible investment policy is simply too high if we remain invested,” Munch Holst said.

In 2020, the Wizz Air’s CEO, József Varadi, stated that the company is deliberately against trade unions, as "trade unions are killing the business".

Prior to the exclusion, the pension fund and Ardevora Asset Management sent a letter to the airline’s management demanding that it changes the way it treats employees. Twelve other investors and potential investors with USD 405bn in assets, including Storebrand, Bridgestone Hispania and PKA were co-signatories.

AkademikerPension said that it was only when investors aired criticism in the press that the management of Wizz Air agreed to attend a meeting. However, during this meeting it set out its approach and said it did not want to change its behaviour.

A spokesperson for Wizz Air previously said that it considers its employees its biggest asset.

“We have worked tirelessly over the last 18 months to preserve the jobs of over 5,000 colleagues, and to provide them with countless opportunities within our network to develop their careers. During the height of the pandemic we had to let go of around 1,000 colleagues, however we have re-hired many of those and are back up to over 5,000 colleagues now. We are also the only airline that has restored the salaries of all of our cabin crew and pilots to pre-pandemic levels.”

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