In Sweden, Tesla (TSLA.O) is encountering escalating pressure from labor unions advocating for mechanics seeking a comprehensive collective bargaining agreement with the American automaker. Workers at one of its suppliers are poised to initiate a strike in the forthcoming week.
Although Tesla lacks a manufacturing facility in Sweden, its electric vehicles undergo maintenance at various workshops nationwide. Approximately 130 affiliated mechanics with the Swedish union IF Metall initiated a strike on October 27. This action gained traction as dockworkers and car dealerships subsequently refused to engage with Tesla products.
Approximately 50 unionized employees at Hydro Extrusions, a subsidiary of the Norwegian aluminum and energy conglomerate Hydro (NHY.OL), are scheduled to cease working on Tesla car-related tasks next Friday, according to a spokesperson from the company. It’s noteworthy that the remaining operations at the Hydro Extrusions plant in Vetlanda will persist despite this strike. This plant specializes in crafting aluminum profiles—aluminum alloys metamorphosed into distinctive shapes—and marks the initial instance of a Tesla supplier in Sweden ceasing operations in solidarity with the ongoing mechanics’ strike.
Tesla has not promptly responded to inquiries seeking comment.
On November 6, the automaker conveyed to IF Metall its reluctance to enter into a collective agreement, as articulated by the union. Jesper Pettersson, spokesperson for IF Metall, articulated the union’s stance, stating, “We urge Tesla Sweden to formalize a collective agreement… Our aim is for this conflict to be concise and expedient.”
Parallelly, in Germany, labor unions have exerted pressure on Tesla to institute a parallel agreement for its workforce of 11,000 in Gruenheide, near Berlin. Although Tesla implemented a 4% wage hike earlier this month, German union IG Metall contends that wages persist at roughly 20% below those offered within the framework of collective agreements.