“That’s it for Wizz Air. It has just been excluded”. So began the statement of the Danish investment fund AkademikerPension to inform that it was withdrawing its money from the Hungarian airline.
Jens Munch Holst, Director of AkademikerPension, announced that “after discussions with the company’s management, we have not been assured that the changes we have been demanding will be initiated. Therefore, we see no other way than to expel the company from our portfolio”.
According to the fund, investigations have shown that Wizz Air management has “repeatedly” refused to recognize the freedom of association and the right to collective bargaining of its employees based in Romania, Ukraine, Norway, and Italy, among others.
It also remarks that “several courts have ruled that the company has engaged in discriminatory behavior and dismissed employees because of their union membership,” something that would be “contrary to the human and labor rights enshrined by the UN.” In 2020, the company’s CEO, József Varadi, even went so far as to state that he was against unions as they “kill business.”
“The risk of being accused of violating our responsible investment policy prevents us from continuing to partner with Wizz Air,” Munch Holst said. “Exclusion is the last tool we use when trying to influence company practices. However, we are not afraid to apply it when necessary. Wizz Air is, effective immediately, out of our investment universe,” the executive ended.
As a result of this decision, AkademikerPension will sell its shares in the company, valued at around DKK 22 million (USD 3.4 million).
See also: Omicron effect? Wizz Air removes 84 routes and two destinations from its network
