Tesla faces pressure in Sweden as workers at the supplier strike. With employees at one of its suppliers scheduled to go on strike next week, unions supporting mechanics seeking a collective bargaining deal with the American automaker are putting increasing pressure on Tesla (TSLA.O) in Sweden.
Although Tesla does not have a factory in Sweden, the electric vehicles it produces are maintained in workshops spread around the nation. On October 27, over 130 mechanics connected to the Swedish union IF Metall went on strike.
Soon after, auto dealers and dockworkers who wouldn’t handle Tesla merchandise joined them. A representative for Hydro Extrusions, a division of the Norwegian aluminum and energy business Hydro (NHY.OL), stated that around fifty unionized employees will cease production on Tesla automobile parts on Friday. The spokesman said, “The remainder of the plant, which is situated in Vetlanda, will continue to operate.”
Hydro Extrusions’s Vetlanda facility, which forms aluminum alloys into profiles, is Sweden’s first supplier of Tesla products to lower equipment in solidarity with the mechanics’ strike.
When a comment was requested, Tesla did not immediately answer. As per the union, the automaker informed IF Metall on November 6 that it was unwilling to sign a collective agreement.
“We would want to see a collective agreement signed by Tesla Sweden. As soon as possible, we want this disagreement to end,” IF Metall spokesman Jesper Pettersson stated.
The automaker in Gruenheide, close to Berlin, has been pressured by German unions to establish a similar arrangement for its 11,000 workers.
Although it increased pay by 4% earlier this month, the German union IG Metall asserts that earnings are still 20% less than what is provided by collective bargaining agreements.