Union Action Against Tesla In Sweden Intensifies: Component Supplier Halts Deliveries To Berlin Plant

The ongoing strike by Swedish worker unions against EV giant Tesla Inc TSLA has intensified after a critical components supplier decided to cut off deliveries in sympathy with protesting mechanics.

What Happened: Approximately 50 workers at Hydro Extrusions, makers of specialized components for Tesla, will either stay at home or perform different duties from Friday, Reuters reported.

Hydro Extrusions is a subsidiary of the Norwegian company Hydro and is the sole provider of these components to Tesla’s Berlin plant.

In late October, IF Metall, a workers’ union representing Tesla mechanics, commenced strike against the automaker for collective bargaining agreements, a foundational aspect of the Swedish labor market. Collective agreements in Sweden encompass a range of employment conditions, including wages, form of employment, occupational pension, working hours, vacations and notice periods.

Since then, other unions have joined the mechanics with dockworkers refusing to offload Tesla vehicles, unionized cleaning staff refusing to clean Tesla buildings, and electricians stopping service and repair work for Tesla.

As per Reuters, Veli-Pekka Saikkala, the negotiation Secretary of IF Metall, stated that the union is prepared to escalate the conflict if Tesla persists in refusing to sign an agreement. “This fight is very, very important. It’s so important that we cannot let it go. It’s important for us but also for the whole Swedish labour market,” Saikkala said.

Why It Matters: The ongoing conflict is seemingly impacting Tesla’s operations in Sweden. According to a report from earlier this week, the strike has the potential to halt new vehicle rollouts in the country with postal workers refusing to deliver plates required to be mounted on new Tesla cars. To make things harder for the EV maker, the Swedish Transport Agency does not distribute registration plates through any other method.

“This is insane,” Musk had responded.

Tesla, on its part, said in a mail to customers earlier this month that despite the strike, more than 90% of its employees continue to remain in their positions for its terms are as good or better than the union’s demands. The company then too reiterated its decision to not enter into collective agreements.

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