One of budget carrier Wizz Air’s investors has opted to sell its shareholding, citing the airline’s policy of refusing to recognise employee unions.
The Danish pension fund AkademikerPension says it is selling DKr22 million ($3.4 million) of shares.
Its director, Jens Munch Holst, says the investor has held discussions with Wizz Air’s management, but not received any indication that its policy will change.
“We see no other way than to exclude the company [from our investments],” he says, adding that investors must be prepared to use such measures to influence companies. “Exclusion is the last tool in our toolbox.”
It claims Wizz has refused to engage in collective bargaining with employees in several countries, and that its behaviour is “in conflict” with labour rights.
“The risk of being linked to a clear and persistent breach of our responsible investment policy is simply too high if we remain invested,” argues Holst.
The airline has previously been criticised over its union position by the European Transport Workers’ Federation, notably after chief executive Jozsef Varadi, in a June 2020 interview with Swiss publication AeroTelegraph, was quoted as saying that unions were “killing the business” – and that Wizz Air’s response to unionisation was to use its flexibility to close bases and “move on”.
AkademikerPension has similarly referred to this comment in laying out its decision.
It adds that, prior to its decision to withdraw from Wizz Air, it contacted the airline together with another investor, Ardevora Asset Management, to request immediate changes to Wizz Air’s approach to employees.
Ardevora Asset Management confirms it delivered a letter to the company, signed by 14 investors, in October last year.
“Although we are no longer invested in the company, we have supported our industry peer, AkademikerPension, in preparing a public statement and securing a meeting with the company in January 2022,” it adds.
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