By Ben Klayman
DETROIT, 9 March (Reuters) – A panel of investors, labor officials, and human rights activists urged auto industry companies to consider their workers and communities through higher environmental protections and higher wages in the transition to electric cars.
Global pressure from countries and regions such as China and Europe to reduce carbon emissions is driving the global auto industry to switch to EVs.
Investors are putting increasing pressure on companies regarding environmental, social and corporate governance issues. Automakers are not only pushing ahead with the EV launch, but they also work 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 organized by the Council of Institutional Investors. This group includes public, corporate, and union employee benefits funds.
He stated that companies have a responsibility towards their investors and to their workers to prepare them for this transition. “We cannot let them hide in the sand pretending they don’t have to make any changes.
At the Washington event, speakers stated that part of that push included good-paying jobs as well as access to union representation in the plants.
Cindy Estrada, vice-president of the United Auto Workers union which represents most U.S. hourly employees at General Motors Co GM.NFord Motor Co. F.NStellantis STLA.MI, said that the key is to protect worker jobs and wages in the EV Transition.
“We could end-up doing this transition, and lower workplace standard,” she stated, citing the many EV batteries that are being produced in the United States. She estimated that the average hourly rate for battery plant workers is $17, as opposed to the $30-plus salaries earned by current engine workers.
Tesla Inc TSLA.OElon Musk, CEO of the EV leader, invited the UAW to vote for workers at his California plant. Officials from the UAW have not yet commented on Musk’s invitation. However, Musk has been known to be hostile to the union in past years.
Ten advocacy groups, including Sierra Club, Greenpeace and Greenpeace, urged Rivian Automotive Inc. to launch an electric vehicle startup in November. RIVN.Oto join labor unions. Rivian’s Illinois plant workers are not unionized.
Richard Kent, Amnesty International’s researcher in human rights and energy transformation, said that investors must use their leverage to push for greater transparency and ask tough questions of companies.
SOC Investment Group, an advisor for union pension funds totaling more than $250 billion in assets, hosted Wednesday’s panel. SOC asked Rivian about its battery supply chain last fall.
(Reporting from Ben Klayman in Detroit Editing By Matthew Lewis)
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