Labor Issues Don't Affect Calpers' Investments

In contrast to a reader's letter ("Will unions use proxy battles just for better bargaining?" Readers Report, Aug. 8), the California Public Employees' Retirement System is not making investment decisions based in any part on whether companies support their employees in any particular manner. CalPERS is looking at workplace practices--among many other issues--to determine whether they have any relationship to poor performance.

Every year, CalPERS reviews its stock portfolio and compares each holding's performance against that of its peers. We arrive at a list of 10 companies that will be the focus of our corporate governance activities. Beginning this fall, one issue we will look at as potentially relating to poor performance is workplace practices. We have no plans to become involved in labor grievances.

Richard H. Koppes

Interim Chief Executive Officer



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