Tesla under scrutiny in Sweden as employees at supplier prepare to strike

In Sweden, Tesla (TSLA.O) is encountering mounting challenges as labor unions advocate for mechanics seeking a group contract with the American automaker. Workers at a Tesla supplier are poised to initiate a strike next week, amplifying the pressure.

Though Tesla lacks a production facility in Sweden, its electric vehicles receive maintenance at various workshops nationwide. Approximately 130 mechanics, affiliated with the Swedish union IF Metall, commenced a strike on October 27. Subsequently, dockworkers and car dealerships joined the movement by refusing to engage with Tesla products.

Around 50 unionized employees at Hydro Extrusions, a subsidiary of the Norwegian company Hydro (NHY.OL), will halt production involving Tesla vehicles next Friday, according to a company spokesperson. The remainder of the Vetlanda-based plant will continue operations concurrently.

The Vetlanda plant specializes in crafting aluminum profiles—transforming aluminum alloys into distinct shapes. This marks the first instance of a Tesla supplier in Sweden ceasing operations in solidarity with the mechanics' strike.

Tesla has yet to offer a response to requests for comment. On November 6, the carmaker notified IF Metall of its reluctance to enter into a collective agreement, as disclosed by the union.

"We're advocating for Tesla Sweden to commit to a collective agreement... We aim for a swift resolution to this conflict," stated Jesper Pettersson, spokesperson for IF Metall.

In Germany, unions have been urging Tesla to adopt a comparable agreement for its 11,000 employees in Gruenheide, near Berlin. Although Tesla raised wages by 4% earlier this month, IG Metall, a German union, contends that wages still linger around 20% below those outlined in collective agreements.

-------This article is partly excerpted from CNN.