Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Factbox-Tesla labour dispute sparks Nordic sympathy strikes

Published 01/05/2024, 09:09 AM
Updated 01/05/2024, 09:11 AM
© Reuters. FILE PHOTO: A general view of a Tesla store in Porsgrunn, Norway, December 24, 2021. Picture taken December 24, 2021. REUTERS/Victoria Klesty

(Reuters) -A labour dispute between Tesla (NASDAQ:TSLA) and Swedish trade union IF Metall has drawn in a host of unions across the Nordic region, all urging the automaker to sign a collective bargaining agreement.

About 130 workers affiliated with IF Metall began a strike on Oct. 27, sparking sympathy strikes - a solidarity tactic by unaffected workers - from dockworkers, cleaners and car dealerships.

Sympathy strikes are generally legal in the Nordic countries, in a stark contrast to the U.S. where such actions are largely prohibited.

In the 1990s, American toy company Toys "R" Us signed a collective agreement with its 130 Swedish employees after a three-month strike that was also accompanied by sympathy strikes and blockades.

Below is an overview of sympathy actions that are adding pressure to Tesla by potentially disrupting its supply chain in Sweden, where Tesla's Model Y was the top-selling car in 2023 with 16,412 new vehicles registered:

SWEDEN

Sweden's transport workers' union pledged in November to block loading and unloading of Tesla cars across the country's ports. A dockworkers' union also said it would not handle Tesla cars in Swedish harbours from Nov. 17.

Seko, which represents service and communications workers, on Nov. 20 started a blockade of delivery and collection of mail and parcels at Tesla's Swedish workplaces by logistics firms PostNord and CityMail, cutting the EV maker's access to license plates from the country's transport authority.

The union of civil servants said its members at PostNord, owned by the Swedish and Danish states, would pause deliveries to Tesla from Nov. 21.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The electricians' union vowed in November to block electrical repair works at Tesla facilities and charging stations, and a painters' union warned it planned to stop painting Tesla cars.

The building maintenance workers' union halted all work related to the automaker from Nov. 17, while a building workers' union pledged to halt maintenance and construction work at Tesla service workshops.

The transport workers' union stopped collecting waste at Tesla's workshops in Sweden from Dec. 29.

Swedish municipal workers' union Kommunal also stopped waste collection from Tesla's facilities in Mölndal and Örebro from Jan. 2, as announced on Dec. 14. It also plans to block waste collection from being performed by other service providers.

Unionised workers at Hydro Extrusions, a subsidiary of Norwegian aluminium and energy company Hydro, stopped work on Tesla car products from Nov. 24. The workers are members of IF Metall.

Sweden's musicians' union said on Nov. 14 it would block some music from Tesla cars' media systems.

Some Swedish pension funds have urged Tesla to sign the agreement with the union, but so far held off selling shares.

NORWAY

Norway's largest private sector labour union said on Dec. 6 it would start blocking transit shipments of Tesla cars meant for the Swedish market from Dec. 20 unless the automaker reached an agreement with IF Metall.

The union said it intended to send a "clear signal to Tesla" and do what was necessary to ensure that any vehicle shipments via Norway to Sweden were blocked, but declined to say exactly what measures it might take.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

DENMARK

Danish dockworkers' union said on Dec. 5 it would not unload or transport cars made by Tesla for Swedish customers.

PensionDanmark, one of Denmark's largest pension funds, said on Dec. 6 it had decided to sell its holdings in Tesla over the automaker's refusal to enter into agreements with labour unions.

FINLAND

Finnish transport workers' union said on Dec. 7 its dockers would not load Tesla vehicles and components destined to Sweden in all Finnish ports from Dec. 20.

Latest comments

Unions are trash
Mafia jealous of Tesla employees getting stock options should be the headline.
Didn’t you hear that musk Has suspended all stock option programs for Tesla employees?
sympathy strikes.. lol... this is coordinated Union strike.. which is fine as long as those striking don't get paid by anyone other than the Union. but we can assume its not the case.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.