Tesla's legal battle in Sweden over workers' rights escalates
4:02 PM EST, November 28, 2023
Elon Musk's electric car company, Tesla, is facing issues in Sweden due to an escalating workers' strike. In response, the American company has decided to sue the Swedish government for its support of the striking workers. Elon Musk took to social media to describe the situation as "madness".
The strike at Swedish centers and Tesla service points kicked off this month. Trade union IF Metall initiated the protests, demanding that Tesla management sign a collective agreement that regulates wages, holiday and retirement bonuses.
The rising protests are aggravating Tesla's challenges in Sweden. The corporation, based in the United States, points the finger at Stockholm over this situation. On Monday, November 27, Tesla filed a lawsuit against the Swedish state in a court in Norrkoping, located in the south of the country.
According to American electric car manufacturer's representatives, the Swedish transport office is contributing to discrimination by not issuing registration plates for new Tesla cars. Additionally, employees of the state-run post office Postnord, members of trade union Seko, refused to deliver the necessary parcels. Tesla argues that this makes it impossible to collect the plates in any other way.
Tesla's conflict with Sweden intensifies
The Tesla workers' strike has inspired solidarity actions from several other industries, not just post-office workers. This includes cleaners and port workers, who are responsible for receiving ships containing Tesla's cars. As a result, the American corporation has begun exploring alternative delivery routes.
All of this is evidently complicating the sales of Tesla cars in Sweden. The situation is further complicated by the company's refusal to meet the demands of the workers. Tesla insists that it does not sign such agreements with workers' unions anywhere in the world.
There is speculation that Tesla fears a domino effect. It is worth noting that a significant majority of companies operating in Sweden sign collective agreements, with about 90 percent of workers being covered by them.
Elon Musk, the founder of Tesla, took to social media to label the company's issues in Sweden as "madness". The local media are describing the protests as a "fight to uphold the Swedish socio-economic model".
