Continued Labour Dispute Affects Tesla Operations in Sweden
The ongoing mechanics strike at Tesla TSLA.O in Sweden remains a thorn in the company’s side, as operations continue to be disrupted despite CEO Elon Musk’s recent comments suggesting otherwise. The labour dispute, one of the longest in the country, has drawn significant attention, with investors keeping a close watch on the situation.
Swedish union IF Metall has been steadfast in its demand for a collective agreement, sparking sympathy actions across various sectors since October. Support has come from postal workers, garbage collectors, repair centres, and more, all refusing to handle Tesla business. This has forced Tesla to seek alternative methods to maintain its operations in Sweden.
Despite Musk’s optimistic outlook shared during a live chat on his social media platform, IF Metall spokesperson Jesper Pettersson countered, stating, “The strike in Sweden is still very much ongoing, our members are on strike.” He also hinted at the possibility of escalating the union’s actions.
The dispute has not gone unnoticed by investors. The CEO of Norway’s $1.6 trillion wealth fund, which holds a 1% stake in Tesla, questioned Musk directly about the issue. The fund has been proactive in addressing its concerns with Tesla’s chair Robyn Denholm and supported a shareholder proposal for Tesla to respect rights to freedom of association and collective bargaining.
Moreover, the ethics watchdog for Sweden’s state pension funds, significant Tesla shareholders, has engaged in dialogue with the automaker regarding the strike. They emphasized the importance of collective bargaining in the Swedish labour market.
Despite the investor pressure and operational challenges, Tesla’s Model Y continues to be Sweden’s top-selling car in the first quarter of 2024. However, industry data indicates an 8% decline in Tesla’s overall registrations in Sweden during the same period.
The Transport Workers’ Union, supporting IF Metall, noted that Tesla had to alter its logistics and waste management processes at their workshops due to the strike. There are indications that Tesla may be circumventing shipping blockades by resorting to truck or train deliveries.
As the standoff between Tesla mechanics and management persists, the impact on Tesla’s Swedish operations and its relationship with investors continues to unfold.
