Tesla, Inc. TSLA faces labor pressure in Sweden as the Transport Workers' Union reportedly announced a halt to waste collection at the automaker's workshops, joining a broader movement by labor groups to push the EV behemoth into granting collective bargaining rights to its employees.
In the Nordic region, Tesla has been experiencing resistance from unions and certain pension funds due to its refusal to agree to Swedish mechanics' demands for collective bargaining, which would cover wages and other working conditions, according to a Reuters report.
In solidarity with striking mechanics, a diverse group of workers, including dockworkers, drivers, electricians, postal employees, and cleaners, are refusing to provide services to Tesla, the report read.
"This type of sympathy action is very rare. We are using it now to protect the Swedish collective agreements and the safety of the Swedish labour market model," President of the Swedish Transport Workers' Union, Tommy Wreeth, said in a statement, which Reuters note.
"Tesla can't ignore the norm on the Swedish labour market," he added. The Transport Workers' Union has stated that a strike will commence on December 24 unless Tesla agrees to sign a collective bargaining agreement with the Swedish union IF Metall, the report read.
Meanwhile, Tesla is stuck in a legal hurdle in Sweden, as a court of appeal overturned a previous decision permitting the company to collect license plates from the manufacturer directly.
The case has now been referred back to a lower court for further review.
Read Next: Tesla Issues Massive Recall Of Over 2M Vehicles Over Autosteer Concerns
Price Action: TSLA shares are trading lower by 1.11% to $234.36 on the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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