Tesla, Inc. TSLA, which has avoided unionization in the U.S. so far, has found that it’s a different ball game altogether across the Atlantic. Sweden’s powerful union, IF Metall, has taken Tesla head-on, clamoring for a collective bargaining agreement, and the strike has spread to other Nordic nations as well.
The striking employees in the region have received support from none other than Sen. Bernie Sanders (I-Vt.), who champions workers’ causes in the U.S.
What Happened: Danish member of Parliament Pelle Dragsted last week shared a video of himself addressing Musk, who is seen saying “I disagree with the idea of unions.” In response, Dragsted said, “Hey Elon! Don’t mess with Nordic workers and our unions because you will surely lose.”
The parliamentarian went on to say that Nordic people love unions because they make the lives of the people better. When America became richer over the last decades, the wealth of the country remained with the billionaires, he said.
Dragsted, who is a socialist by party affiliation, said when Denmark got richer, the workers got their share. Among the benefits unionization has brought about in the country were securing a decent living wage, a workweek of 37 hours, five weeks of paid vacation, paid sick leave, and the right to one-year parental leave for every child, he said.
Commenting on Dragsted’s post on X, formerly Twitter, Sanders said Nordic workers have the highest standard of living on earth because of their strong trade unions. “They deserve our support,” he added.
Sanders has been a pro-labor Congressman, often voicing his opinion for raising the minimum wages and joining the picket lines of striking employees.
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Why It’s Important: The union strike in Sweden and other Nordic countries has crippled Tesla’s operations in the region despite the workarounds it tried. Danish labor union 3F last week joined Swedish mechanics in their strike action against Tesla, as they dockworkers and lorry drivers in the country stopped unloading and transporting Tesla vehicles to Sweden.
After the United Auto Workers union in the U.S. successfully negotiated a deal with Detroit’s big three in the U.S. in October, reports suggested Shawn Fain, the president of the union, has expressed intent to take the fight to Tesla’s factories.
Tesla was spending on average $45 per hour for its workers, about $20 less than what the legacy automakers were paying ahead of the implementation of the latest deal they agreed with UAW, a Business Insider report said in mid-September.
In premarket trading on Friday, Tesla rose 0.88% to $255.40, according to Benzinga Pro data.
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