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

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.

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