Tesla Takes Legal Action Against Sweden as New Vehicle Deliveries Face Hindrance Due to Labor Strikes and Disputes

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By Car Brand Experts

Approximately 130 Tesla technicians, representing ten different service centers across Sweden, have been engaged in strike action since October 27. Despite the significance of collective wage agreements in Swedish labor practices, Tesla has been reluctant to sign such agreements with its workers. With the majority of Swedish employees being covered by various collective wage agreements, several unions, including the national postal service, are expressing solidarity with the striking Tesla employees. The postal service is now holding back on the delivery of license plates for new Teslas, as reported by Barron’s.

Postnord, a postal service owned jointly by Sweden and Denmark, holds the exclusive authority to distribute official documents, such as license plates. As a result of the postal workers’ stance, the arrival of new Tesla cars is hindered. It is not just postal employees who are joining in refusing services to Tesla; electricians and dock workers are reportedly declining to engage in work for the company, as mentioned in Bloomberg. The unloading of new Teslas at Swedish ports has also been impacted.

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Elon Musk’s displeasure is evident. In response, the CEO of Tesla has taken legal action against both Postnord and the Swedish Transport Ministry (STM) in a bid to ensure the timely delivery of plates for Tesla vehicles. Musk publicly criticized the labor strike as “insane” on Twitter. Following Musk’s legal challenge, the courts have mandated that the postal service must supply license plates for new Teslas within seven days, as reported by Reuters. The resolution concerning other workers and unions opposing Tesla remains uncertain; however, given the past court ruling, the automaker might receive a favorable outcome once more.

Despite the ongoing strike and subsequent court decision, Tesla has not progressed towards establishing a collective wage agreement. According to a report by the Swedish publication Dagens Industri, there are currently no active negotiations between Tesla and the union, with Musk instructing the local subsidiary against engaging in discussions.

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