Union in Canada advocate for pension funds to withdraw investments in Tesla due to public service apprehensions
Canadian Association of Professional Employees Urges Divestment from Tesla
The Canadian Association of Professional Employees (CAPE) has issued a call for Canadian pension funds to divest from Tesla. This move comes in response to concerns over Elon Musk's political influence and his perceived hostility towards public services.
According to CAPE, Musk's push for deep cuts to essential services and public sector jobs in the U.S. undermines both American and Canadian public institutions. The association views such actions as incompatible with the values of public sector employees and pension fund beneficiaries.
CAPE advocates that public pension funds should avoid investments in companies whose leadership or practices conflict with the public interest or the principles of supporting strong public services. The association emphasizes the need for robust public investment in core programs like employment insurance and healthcare.
Nathan Prier, CAPE's President, stated that it is concerning for Canadian public sector pension funds to support a corporation whose owner is attacking federal programs and workforce in the U.S. Prier also warned against the potential adoption of a DOGE-like model in Canada, referring to the U.S. Department of Government Efficiency (DOGE) which Musk has been involved with.
CAPE is one of the largest federal public sector unions in Canada, representing over 27,000 federal employees. The association has proposed alternatives to government cost-cutting, including reducing reliance on costly external consultants and adopting flexible telework policies to convert federal office space into much-needed housing.
As of December 31, 2024, the Public Sector Pension Investment Board (PSPIB) held approximately 690,000 shares in Tesla, valued at $278 million. However, due to Tesla's stock price decline and trade tensions between the U.S. and the rest of the world, the value of these shares has dropped more than 36% since then, currently valued at $178 million.
Prier has urged the CPSIB to act now regarding divestment from Tesla. He also called for Canadian pension funds to stand against corporate interference, naked conflicts of interest, and indiscriminate job cuts. If you want more detailed information or the latest updates on this issue, checking CAPE’s official statements or news reports on their advocacy efforts would be helpful.
The Canadian Association of Professional Employees (CAPE) suggests that Canadian pension funds should avoid investments in companies whose leadership or practices conflict with the public interest, such as Tesla, given Elon Musk's political influence and perceived hostility towards public services. CAPE also advocates for robust public investment in core programs like employment insurance and healthcare while warning against corporate interference and indiscriminate job cuts.
