Investors are putting increasing pressure on auto OEMs regarding environmental, social, and corporate governance (ESG).
An investor panel, labor officials, and human rights activists argued that the auto industry must take into consideration their communities and workers by paying higher wages and providing greater environmental protections during the transition to electric cars. The global auto industry is moving towards electric mobility due to pressure from countries and regions like China and Europe, which want to reduce carbon emissions.
Investors are putting increasing pressure on auto OEMs regarding environmental, social, and corporate governance (ESG). They are not only moving ahead with the EV rollout, they are also working to ensure a supply for battery minerals. “Every business will suffer from the transition to a net zero economy,” said Michael Frerichs, Illinois State Treasurer, at a conference hosted by the Council of Institutional Investors. This group includes public, corporate, and union employee benefits funds.
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He said that while companies have a responsibility to their investors, they also have responsibilities towards their communities and workers to prepare for the transition. He stated that we cannot let them hide in the sand pretending they don’t need any changes.
This push includes high-paying jobs and union representation in plants. Cindy Estrada, vice-president of the United Auto Workers union which represents most hourly workers in the US at General Motors and Ford Motor Co, stated that the key to ensuring worker jobs and wages during the EV transition is protecting them.
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She cited the number of EV batteries plants that are coming online in the US, and stated that the workers at the battery plant will be paid approximately $17 an hr. This is in contrast to the $30-plus wage workers at current engine plants.
Elon Musk, Tesla CEO invited the UAW to vote for workers at his California plant. Though UAW officials did not comment on Musk’s invitation to vote, Musk has been hostile toward the union in the recent past.
(with inputs by Reuters)
Date of first publication: 10 Mar 2022 at 09:37 AM IST