Tesla encountered a legal defeat in Sweden on Thursday, as tensions with Nordic trade unions intensified.
A Swedish court ruled that PostNord, the national postal service, is not obligated to deliver license plates to Tesla, which are currently withheld by PostNord workers. This decision is part of an ongoing dispute over collective bargaining agreements, reports Reuters.
The conflict has escalated as Tesla faces increasing pressure from unions in Sweden, Norway, and Denmark. These unions support the demands of Swedish IF Metall’s mechanics, who have been on strike since October 27, seeking a collective agreement with Tesla. The company, known for its policy against collective bargaining, asserts that its employees receive equal or better terms than those proposed by IF Metall.
In a related development, PensionDanmark, a major Danish pension fund, divested its Tesla holdings on December 6, citing the company’s refusal to engage in collective bargaining. The sold shares were valued at approximately 476 million Danish crowns ($68.9 million).
The court’s interim decision follows Tesla’s lawsuit against PostNord, triggered by a sympathy strike that halted the delivery of license plates for new Tesla cars. The Solna district court stated, “PostNord should not be forced to make deliveries to Tesla before the case is closed.”
The sympathy strike, organized by Seko union, has garnered support from various worker groups, including dockworkers, drivers, electricians, and cleaners, who are either refusing or threatening to refuse services to Tesla. Gabriella Lavecchia, president of Seko, urged Tesla to sign the collective agreement with IF Metall, emphasizing the importance of the Swedish collective agreement model.
PostNord, while satisfied with the court’s interim verdict, maintained its neutrality, with spokesperson Henrik Ishihara stating, “It is not our job to review which agreements other companies enter into.”
Tesla’s presence in the Nordics is significant, with Norway and Sweden being its fourth and fifth-largest markets, respectively. The Tesla Model Y is currently the most-sold car in Sweden this year, and the world.
In a related legal matter, a court ruled on November 27 that Sweden’s transport authority must find a way to deliver license plates to Tesla, a decision that the agency has appealed.
While some Swedish pension funds have also called on Tesla to sign the agreement with the union, they have not yet sold their shares.
This is becoming sheer lunacy…if it wasn’t already before. In a last case scenario, I can see Tesla rolling up the rug and pulling out of Scandinavia entirely. I mean, if they can’t operate there anymore what else can they do? Caving in to extortion isn’t an option so I’m hoping the unions come to their senses before it comes to that.
Scandinavia poster child for international business avoidance. Mob rules.