Tesla Faces Demand for Union-Rights Proposal at Annual Meeting

A Canadian nonprofit is urging Tesla Inc. to respect its workers’ right to form unions, setting up a likely shareholder vote on a topic that has drawn the ire of Chief Executive Officer Elon Musk.

Share, an advisory group that works with investors such as pension funds, family foundations and indigenous tribes, has submitted a resolution to be considered at the electric carmaker’s annual meeting urging Tesla’s eight-member board to adopt and publicly disclose a policy on labor rights.

The guidelines should prohibit management from “undermining” or interfering with efforts by employees to form or join unions, according ...