Teachers, unions and workers press CalSTRS to divest from Israeli bonds, defense contractors and Tesla

Public commenters at the California State Teachers’ Retirement System (CalSTRS) Investment Committee meeting pressed trustees to divest holdings they said support human-rights abuses and worker mistreatment, centering Israel bonds, defense contractors, Palantir Technologies and Tesla.

Teachers, retired educators and union representatives described moral and financial rationales for divestment. "It is long past time for CalSTRS to divest from Tesla. Sell Tesla now," said Ruth Radetsky, a retired teacher and CalSTRS member, echoing financial and values arguments made by several speakers. Dr. John O’Neill urged trustees to act "before the SpaceX IPO," citing governance concerns about Elon Musk.

Other speakers focused on Israel-linked investments. Chris, a caller who identified himself as a Palestinian educator, said CalSTRS bought two Israel bonds in March 2024 that mature in 2034 and 2054 and urged an investigation and sale of those bonds. Multiple commenters — including Jeffrey Gottesman, Elana Auerboch and Melinda Stahr — framed bond holdings and investments in defense contractors as morally incompatible with teachers’ values and as posing reputational and financial risks.

Unions and labor advocates raised workplace and stewardship concerns tied to private equity. Jared Gaby-Bigel of the UFCW and multiple workers from Apollo-owned Cardenas Markets recounted allegations of retaliation and safety problems, and urged CalSTRS to hold private-equity owners accountable for labor and health-and-safety practices. "Why is the CalSTRS board still considering investing with Apollo when Apollo’s leaders are working against teachers and working people in California?" Jared asked.

Alyssa Giachino of the Private Equity Stakeholder Project told trustees that CalSTRS’ exposure to private markets (cited in the meeting as roughly 48% of the portfolio by speakers) requires stronger diligence and workforce principles for general partners. Union representatives from OPEIU and CWA asked staff to engage companies on implementation of global labor agreements.

Speakers offered a range of remedies: immediate sale of specific holdings (bonds or equities), a moratorium on new allocations to certain managers (including Apollo), and adoption of labor-sensitive investment policies for private-market commitments. Several callers emphasized that the positions involved a small share of the fund but carried outsized moral and reputational implications.

Board members heard the comments during the allotted public-comment period and did not take an immediate substantive vote on divestment during the meeting. The committee recessed to closed session and returned with no reportable action. Staff and trustees indicated the board will continue its deliberative process, including written recommendations and future agenda items about engagement, policy and portfolio priorities.