The Guardian reports that Morgan Stanley has upset the union movements in both the UK and the USA by issuing a research note which advises investors to 'run the other way' from companies that are highly unionised.
The newspaper quoted from the research note, which is believed to have said: 'Look for the union label....and run the other way......Rigidity in labour costs, processes and pension requirements, while perhaps beneficial to employees, may prove toxic to shareholders'.
Morgan Stanley is also said to have issued another note, which claimed that unionised industries 'meaningfully underperformed the market', although the firm did not go as far as saying that unionisation itself was the cause of this.
Roger Lyons, general secretary of UK union Amicus, said: 'It is clear that Morgan Stanley are giving this advise based upon prejudice and not upon fact.' The President of America's trade union body AFL/CIO also condemned Morgan Stanley for 'attacking the fundamental structures of fairness in our economy'.
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