By Ben Klayman

DETROIT, (Reuters) – Auto companies must consider their workers and communities through higher environmental protections and higher wages in transition to electric cars, a panel made up of labor officials, investors and activists on Wednesday.

Global pressures from regions and countries like China, Europe and other places such as Japan are driving the auto industry to switch to EVs.

Investors place increasing demands on businesses regarding corporate governance and social, environmental and corporate governance issues. Not only is the auto industry moving forward with the EV launch, they are also seeking to supply battery minerals.

The transition to a net-zero economic system will have a significant impact on every business,” said Michael Frerichs, Illinois State Treasurer, at the Council of Institutional Investors conference. This group includes public, union and corporate employee benefit funds.

He stated that companies have to be prepared for the transition, both to themselves and to investors. We can’t allow them to bury their heads and pretend that they aren’t required to change.

At the Washington conference, speakers stated that part is a push for good-paying work and union representation in plant.

Cindy Estrada (Vice President of United Auto Workers), which represents the majority U.S. hourly employees at General Motors Co (NYSE :), Ford Motors (NYSE 🙂 Co and Stellantis said that protecting workers jobs and wages during the EV transition is key.

She said that “we could end up doing the transition and lower workplace standard,” citing numerous EV-powered plants being built in the United States. According to her, the average hourly wage for a battery plant worker is $17, as compared to the $30 per hour that current workers at engine plants make.

Elon Musk, CEO of Tesla Inc (NASDAQ:) invited earlier this month the UAW for a vote in order to represent the workers at his California plant. Although UAW representatives have yet to comment on Musk’s invitation, he has previously been antagonistic towards the union.

Ten advocacy groups including Sierra Club (Greenpeace) and Greenpeace urged Rivian Automobile Inc to join labor unions. Rivian employees in Illinois aren’t unionized.

Richard Kent from Amnesty International, a researcher in human rights and the energy transition, says that companies need to be more transparent and investors should use their influence to get tough questions answered.

SOC Investment Group hosted Wednesday’s panel. This group is an advisor for union pension funds that have assets of more than $250B. SOC had Rivian quizzed last autumn about the battery supply chain.