Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Tesla faces pressure in Sweden as workers at supplier to strike

Published 15/11/2023, 18:19
© Reuters. FILE PHOTO: The logo of Tesla is seen in Taipei, Taiwan August 11, 2017. REUTERS/Tyrone Siu/File Photo

STOCKHOLM (Reuters) - Tesla is facing growing pressure in Sweden from unions backing mechanics demanding a collective bargaining agreement with the U.S. carmaker, with workers at one of its suppliers set to go on strike next week.

Tesla has no manufacturing plant in Sweden but its electric cars are serviced at workshops across the country, where around 130 mechanics affiliated with Swedish union IF Metall began a strike on Oct. 27.

They were soon joined by dockworkers and car dealerships who refused to handle Tesla products.

About 50 unionised workers at Hydro Extrusions, a subsidiary of Norwegian aluminium and energy company Hydro, will stop work on Tesla car products next Friday, a spokesperson for the company said. The rest of the plant, located in the city of Vetlanda, will keep running, the spokesperson added.

Hydro Extrusions's Vetlanda plant makes aluminium profiles - aluminium alloys transformed into shapes, and is the first Tesla supplier in Sweden to down tools in support of the mechanics' strike.

Tesla did not immediately respond to a request for comment.

The carmaker told IF Metall on Nov. 6 it did not want to sign a collective agreement, the union said.

"We want Tesla Sweden to sign a collective agreement... We want this conflict to be as brief and short as possible," IF Metall spokesperson Jesper Pettersson said.

German unions have pressured the carmaker to implement a similar agreement for its 11,000 workers in Gruenheide, near Berlin.

It raised wages by 4% earlier this month, but German union IG Metall claims wages remain around 20% below those offered under collective agreements.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.