Influence

Pension funds run by trustees have enormous influence and for trade unions there is an opportunity to ensure that this power is well used, benefiting scheme members and making a positive economic and social contribution at the same time. That can mean opposing a “short-termist” approach to investment, including investments arising from pension trustees’ “fiduciary duties” (see page 71).

Public services union UNISON reminds members that they have “pension power” when they pay into a work pension fund: “So you are not just a pension fund member but also an investor. By getting involved in deciding how those very large funds are invested, we can help make this money work for members, society and the general economy.”

The charity Share Action works with trade unions and others around investment issues such as the Living Wage. With general union Unite and UNISON it has used investor power to apply pressure on big companies whose shares are traded on the London stock market and held in many pension funds. It also has links with other unions including CWU, TSSA, Prospect, PCS and UCU and EIS. This also includes the Green Light campaign that brings together a broad coalition of environmental charities, trade unions and activist organisations to demand that pension funds face up to the financial and environmental risks of climate change (http://greenlightcampaign.org.uk).