Maybe I’m missing something, but the way I read this is that the pension funds for the workers would be required to divest from the companies… I don’t see how that hurts the workers, except by depriving them of the opportunity of profiting with the company, but those funds can be reinvested elsewhere. But the state of CA isn’t dictating that the workers of the company can’t have pensions or lose their funds. The companies they work for can go out of business or lose business, but as @Boundegar said, that’s how boycotts work. So what detail am I not seeing?
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