Clwyd Pension Fund Ends Investment in Oscar Mayer Owner Amid Controversy

Clwyd Pension Fund Ends Investment in Oscar Mayer Owner Amid Controversy

Clwyd Pension Fund Ends Investment in Oscar Mayer Owner Amid Controversy

In a decisive move, the Clwyd Pension Fund has announced it will cease further investment in the parent company of ready meal manufacturer Oscar Mayer, a decision rooted in ethical concerns and worker welfare. This development arises as Oscar Mayer faces an industrial dispute with its Wrexham workforce, igniting criticism over alleged "fire and rehire" tactics that could cut wages by as much as £3,000 annually for some employees.

The pension fund, which provides financial support to over 52,000 retired council officers and members across Wrexham, Flintshire, and Denbighshire, discovered it had indirectly invested £5.6 million through Pemberton Asset Management. Pemberton holds an 85% stake in Oscar Mayer. Unite, the union representing the workers, strongly opposed this connection, arguing it was unethical for pension benefits to stem from practices that reduce wages for community members, many of whom contribute to the fund via council tax payments.

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Unite’s plea to the pension fund’s committee struck a chord, with the union highlighting the irony of workers indirectly financing their own pay cuts through pension fund investments. Committee members unanimously agreed to halt any future allocation of funds to Pemberton Asset Management. They also vowed to collaborate with the Wales Pension Partnership, the broader body managing these investments, to evaluate the alignment of such decisions with the Responsible Investment Policy.

Wrexham County Borough councillor Anthony Wedlake underscored the personal nature of this issue, noting that local workers contribute approximately £150,000 annually to the pension fund. "It's shameful that instead of improving company performance, they're driving down wages," he remarked. Fellow councillor Billy Mullin echoed this sentiment, hailing the decision as a meaningful step toward ethical investing.

This case illustrates the growing scrutiny on institutional investments and their social implications. The Clwyd Pension Fund’s action sends a clear message: profitability cannot come at the expense of community livelihoods. It marks a significant victory for ethical investment advocates and the workers fighting to protect their wages.

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