On July 1, 2024, Apollo adopted Responsible Workforce Principles. The goal of the principles is to ease investor concerns about labor practices in Apollo’s companies which can lead to costs and risks.
However, Apollo is not living up to its own principles at portfolio company Cardenas Markets.
For example:
- Cardenas has settled three class action lawsuits alleging violations of the California Labor Code in three years covering tens of thousands of employees, at a total cost of $10 million. Cardenas did not admit wrongdoing in these settlements.
- United Food and Commercial Workers Union has filed charges with the National Labor Relations Board alleging that 5 Cardenas employees have been discharged on account of their Union and/or protected activity.
- In 2024, a Cardenas employee filed suit against Cardenas Markets alleging claims under California’s Fair Employment and Housing Act of sexual harassment and retaliation for reporting sexual harassment. (Read more)
- Cardenas employees have testified at pension fund meetings describing examples where Cardenas Markets failed to uphold these Apollo principles:
- “Respecting the rights of employees to decide whether or not to join a union and engage in organizing efforts.”
- “Providing safe and healthy workplaces”
- “Providing workplaces free from discriminatory practices”
Apollo is dressing up its labor image by adopting Responsible Workforce Principles, while it fails to mitigate labor risks at Cardenas Markets for pension fund investors in Apollo Fund IX. (Read more)
Will Apollo uphold its principles when a portfolio company resists?