Freedom of Association and Collective Bargaining | Interfaith Center on Corporate Responsibility

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<h4>Resolution Details</h4>
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<strong>Company:</strong>
<p>Tesla Inc.</p>
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<strong>Year:</strong>
<p>2025 </p>
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<strong>Issue Area:</strong>
<p>Human Rights & Worker Rights </p>
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<strong>Focus Area:</strong>
<p>Collective Bargaining/Unionization </p>
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<strong>Status:</strong>
<p>Filed</p>
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<h2>Resolution Text</h2>
<p>Freedom of association and collective bargaining are fundamental human rights protected by international standards including the Fundamental Principles, United Nation’s Guiding Principles on Business and Human Rights, and United Nation’s Universal Declaration of Human Rights.</p>
<p>Tesla’s policies lack clarity as to which standards will prevail where applicable laws offer protections that fall short of international standards. Tesla’s Business Code of Ethics states that “Tesla is committed to upholding and respecting all internationally recognized human rights…” Yet, its Global Human Rights Policy undermines this commitment by stating Tesla respects labor rights “[i]n conformance with local law,” notably leaving out the commitment to the often more stringent international standards. </p>
<p>There are clear indications that Tesla may not be adhering to international labor rights standards.[i]  In Sweden, Tesla mechanics represented by IF Metall have been on strike for over a year and Tesla operations have suffered from a number of solidarity strikes after refusing to sign a collective agreement.[ii] In Germany, Tesla is refusing to bargain with employees represented by IG Metall and has been accused of threatening and firing IG Metall members of the works council according to public reports.[iii] </p>
<p>Freedom of association and collective bargaining rights enable workers to promote and realize other fundamental labor rights, including the rights to a safe and healthy workplace that is free from discrimination. In the United States, Tesla has faced multiple lawsuits around racial and sexual harassment[iv] and has had numerous health and safety violations.[v] Additionally, Tesla has been accused of unsafe working conditions in Germany.[vi]</p>
<p>Such reports may represent material reputational, legal, and operational risks to Tesla’s shareholders. For example, under the new German Supply Chain Due Diligence Act, companies can be held legally responsible for human rights abuses in their operations and global supply chains with fines of up to 2% of average annual “turnover” or revenue. Further the European Union’s new Corporate Sustainability Due Diligence Directive establishes a legal duty for companies to identify and address adverse human rights impacts throughout their operations and value chain.  </p>
<p>The Policy will add clarity, promote better adherence, and help mitigate risk.</p>
<p>[i] https://www.cnbc.com/2022/06/02/tesla-paid-pr-firm-to-surveil-employees-on-facebook-in-2017-union-push.html; https://www.theguardian.com/technology/2018/sep/10/tesla-workers-union-elon-musk;  https://www.cnbc.com/2017/04/25/workers-involved-in-union-activities-say-tesla-is-illegally-intimidating-them.html</p>
<p>[ii] https://www.bloomberg.com/news/articles/2024-10-01/tesla-faces-widening-strike-in-sweden-as-unions-double-down</p>
<p>[iii] https://www.reuters.com/business/autos-transportation/german-union-slams-aggressive-tesla-firing-works-council-rep-2024-10-14/;</p>
<p>[iv] https://www.law.com/therecorder/2024/06/18/deeply-troubling-tesla-sued-for-creating-racially-hostile-work-environment-amid-surge-of-racial-discrimination-litigation/?slreturn=20241105161518; https://www.thenation.com/article/society/tesla-sexual-harassment-discrimination-austin/</p>
<p>[v] https://www.theinformation.com/articles/at-teslas-giant-texas-factory-injuries-and-safety-lapses-mount; https://www.texasobserver.org/tesla-texas-worker-death-heat/;</p>
<p>[vi] https://www.reuters.com/business/autos-transportation/tesla-rejects-union-claims-reports-health-safety-issues-german-plant-2023-10-10/; https://fortune.com/2024/09/30/tesla-managers-germany-sick-leave-visit-employees-safety-union-elon-musk/</p>

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<h3>Lead Filer</h3>
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<div class=”views-field views-field-nothing”><span class=”field-content”> Dolapo Makinde</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Shareholder Association for Research and Education (SHARE)</span></div>
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