Skip to main content
MENU
Subscribe
  • Sign Up Free
  • LOGIN
  • Subscribe
  • Topics
    • Alternatives
    • Artificial Intelligence
    • Consultants
    • Defined Contribution
    • ESG
    • ETFs
    • Face to Face
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Regulation
    • SECURE 2.0
    • Special Reports
    • Washington
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Influential Women in Institutional Investing 2023
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • ESG Investing | Industry Brief
    • Innovation in ESG Investing
    • 2023 ESG Investing Conference
    • ESG Rated ETFs
    • Divestment Database
  • Defined Contribution
    • Latest DC News
    • The Plan Sponsor's Guide to Retirement Income
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2023 Defined Contribution East Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Research Center
    • The P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
Breadcrumb
  1. Home
  2. PENSION FUNDS
October 03, 2019 03:06 PM

DiNapoli urges GM to resolve strike

Will Bredderman
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Bloomberg
    United Auto Workers strike outside the General Motors Flint Assembly plant in Michigan. The walkout, which began more than two weeks ago, has caught the attention of New York State Comptroller Thomas P. DiNapoli.

    State Comptroller Thomas P. DiNapoli, sole trustee of the $216.2 billion New York State Common Retirement Fund, has weighed in the ongoing labor dispute between the United Auto Workers and General Motors.

    Crain's New York Business, obtained an Oct. 1 letter Mr. DiNapoli sent to GM CEO Mary Barra voicing concerns about the strike — which began in September and has lasted more than two weeks — and how it might impact the New York pension fund's 3.8 million shares in the automaker. Both the company and the union have signaled significant advancements in the ongoing negotiations over a new contract, in which GM has offered raises and payouts to its employees in exchange for the ability to employ workers on a temporary basis for years at a time.

    At no point in his letter does Mr. DiNapoli threaten to divest the retirement system from GM, as he has done with makers of firearms, but he repeatedly voices concern about the investment's stability should the fight stretch on much longer.

    "As an investor, I am concerned about reports estimating the company's lost earnings between $50 and $100 million per day during the strike," he wrote, noting that a two-month-long labor battle in 1998 cost the company $2 billion. "It is conceivable this strike could similarly cause significant losses unless a resolution is quickly reached."

    Mr. DiNapoli, whose past campaigns have received the UAW's support, also noted that the union counts a number of New Yorkers among its members and that the strike has idled facilities in portions of the state. He goes on to urge the company to consider maintaining and enlarging its operations on U.S. soil.

    "I believe the effective management of human capital is critical to the success of GM and its ability to create long-term shareholder value," the letter says.

    GM has offered to open new electric vehicle plants in Michigan and Ohio as part of a resolution to the strike. The company's response to DiNapoli did not directly address any of the concerns he raised.

    "We are working hard to reach an agreement that builds a stronger future for our employees and our business," GM spokesman Daniel Flores said in a statement to Crain's.

    Here is the letter:

    Dear Ms. Barra;

    I write as Trustee of the New York State Common Retirement Fund (Fund), the third largest public pension fund in the United States, which holds and invests the assets of the New York State and Local Retirement System on behalf of its 1.1 million members, retirees and beneficiaries. The Fund is a long-time investor in General Motors Company (GM or the Company) and as of June 30, 2019 held more than 3.8 million shares of the Company's stock.

    Specifically, I am writing to express my concern regarding the current labor dispute betwee GM and the United Auto Workers which has resulted in approximately 46,000 employees striking at more than thirty Company factories in several different states, including New York State. As an investor, I am concerned about reports estimating the Company's lost earnings between $50 and $100 million per day during the strike. The last prolonged strike at GM, lasting 54 days in 1998, reportedly cost the Company $2 billion and two percent of market share. Even though recent reports indicate the Company and the UAW are making progress in their negotiations, it is conceivable this strike could similarly cause significant losses unless a resolution is quickly reached.

    I believe the effective management of human capital is critical to the success of GM and its ability to create long-term shareholder value. Fair wages and benefits for workers and a more U.S.-based work force are important matters to consider in fostering positive labor relations. Some news reports suggest that a tentative negotiation may be near and I urge GM to continue working diligently towards an expeditious resolution of this dispute on terms that are equitable to both labor and management. Such an agreement will allow the company to continue building its successes in partnership with its employees.

    Thank you for your attention to this matter.

    Sincerely,

    Thomas P. DiNapoli

    State Comptroller

    This article was published by Crain's New York Business, a sister publication to Pensions & Investments.

    Related Articles
    DiNapoli asks 47 Fortune 500 firms to update employment policies
    New York state comptroller urges companies to participate in Disability Equality index
    Recommended for You
    San Diego2_i.jpg
    San Diego County Employees returns 9.6% for fiscal year
    Bank_of_England_i.jpg
    A year on from LDI crisis, U.K. pension funds in a better place
    Nicole_Musicco_2023_i.jpg
    CalPERS once again finds itself with no CIO to drive new allocation
    Upside Ahead for Emerging Market Debt
    Sponsored Content: Upside Ahead for Emerging Market Debt
    Sponsored
    White Papers
    2023 Hot Topics in Retirement and Financial Wellbeing
    Bonds: Shaken, but Not Stirred
    Today’s rate cycle and US equities in target date portfolios
    A Study of Allocations to Alternative Investments by Institutions and Financial…
    Unlocking Hidden Value in Japan
    The Art of the Possible in Data Automation for Institutional Investors
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    December 12, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Custom Content
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Artificial Intelligence
      • Consultants
      • Defined Contribution
      • ESG
      • ETFs
      • Face to Face
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Regulation
      • SECURE 2.0
      • Special Reports
      • Washington
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Influential Women in Institutional Investing 2023
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • ESG Investing | Industry Brief
      • Innovation in ESG Investing
      • 2023 ESG Investing Conference
      • ESG Rated ETFs
      • Divestment Database
    • Defined Contribution
      • Latest DC News
      • The Plan Sponsor's Guide to Retirement Income
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2023 Defined Contribution East Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Research Center
      • The P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
    • Careers
    • Events
      • View All Conferences
      • View All Webinars