Tesla Faces Mounting Labor Strife in Sweden: Elon Musk Decries Strikes as ‘Absurd’

Tesla Faces Mounting Labor Strife in Sweden: Elon Musk Decries Strikes as ‘Absurd’

Elon Musk has labeled the escalating series of strikes against Tesla in Sweden as “absurd” as labor unions persist in their push for the electric car manufacturer to agree to a collective bargaining deal with its mechanics.

The labor dispute commenced on October 27 when mechanics affiliated with the Swedish union IF Metall initiated a walkout. IF Metall is advocating for a collective agreement outlining wages and benefits for around 120 employees based at Tesla’s service facilities in Sweden, asserting the need for “fair and secure working conditions comparable to those at similar companies in the country.”

Since the commencement of the strike, eight additional unions have joined in solidarity with IF Metall. In a significant development, Swedish postal services have also joined the strike, potentially causing a substantial setback. Their decision to engage in a sympathy strike means that new Tesla vehicles will not be issued license plates, signaling a potential halt in new car registrations in a crucial market for the company.

Expressing his frustration, Musk took to X, formerly Twitter, stating, “This is absurd,” on Thursday.

In an earlier incident in November, dockworkers at numerous ports in Sweden refused to unload cars from ships, while electricians ceased repair work at Tesla’s charging stations. Cleaners, represented by unions, have also halted work at Tesla facilities.

The Swedish Transport Workers’ Union, representing dock workers, released a statement asserting the importance of supporting the collective agreement and the Swedish labor market model.

Beyond Sweden, Tesla is encountering labor-related challenges at its other manufacturing sites. In Germany, where the company manufactures its Model Y cars at the Berlin gigafactory, union leaders have been working to organize the approximately 11,500 employees. Responding to mounting pressures, Musk provided a 4% pay raise to workers at the Berlin gigafactory.

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