Elon Musk's Tesla Facing Growing Union Pressure in Sweden; Court Rules In Favor Of Postal Workers

A Swedish court on Thursday reportedly ruled in favor of state-owned postal service PostNord amid an ongoing conflict between EV giant Tesla Inc TSLA and unions.

What Happened: The Swedish court decided that PostNord is not required to deliver license plates to Tesla, which were being withheld by the postal service’s employees as part of its attempts to pressure the company into entering collective agreements with its workers, Reuters reported. This interim ruling is the most recent development in a dispute revolving around collective bargaining agreements.

In late October, IF Metall, a workers' union representing Tesla mechanics, commenced a strike against the automaker for collective bargaining agreements, a foundational aspect of the Swedish labor market. In Sweden, approximately 90% of the workforce operates under collective agreements that govern various employment conditions, such as wages, employment types, occupational pensions, working hours, vacations, and notice periods.

Why It Matters: Since the onset of the strike, 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.

“This is insane,” Tesla CEO Elon Musk wrote on X in November once PostNord too joined the ongoing strike and refused to deliver plates to the company to mount on their new vehicles, threatening timely future vehicle roll-outs. Tesla subsequently sued PostNord.

The EV maker contends that, despite the strike, over 90% of its employees continue to hold their positions, asserting that its terms are as good as or better than the union's demands. While Tesla doesn't manufacture in Sweden, its Model Y is among the best-selling car models in the country.

Photo via Shutterstock

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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