Categories: News

Musk’s Scandinavian woes deepen as Tesla loses Swedish court case, Finnish union joins port blockade

C.E.O. of Tesla, Chief Engineer of SpaceX and C.T.O. of X Elon Musk takes the stage throughout the New York Instances annual DealBook summit on November 29, 2023 in New York Metropolis.
Michael M. Santiago | Getty Photos

Tesla‘s troubles with labor unions in Scandinavia deepened on Thursday, because it misplaced authorized motion in opposition to Sweden’s postal service over its refusal to ship licence plates to the U.S. electrical car big.

The postal service’s staff blocked Tesla license plate deliveries late final month in a present of solidarity with mechanics putting over the corporate’s refusal to signal a collective bargaining settlement with staff, which is customary in Sweden.

Tesla filed a lawsuit in opposition to the Swedish Transport Company and the postal service, however a Swedish court docket dominated on Thursday that PostNord won’t be compelled to ship license plates for now.

Union members throughout a number of Swedish industries have joined the secondary strike motion with members of commerce union IF Metall, who’ve been embroiled in an ongoing battle with Tesla for round six weeks.

Earlier this week, Denmark’s largest commerce union introduced its personal sympathy strike to stop Tesla automobiles being delivered to Danish ports and transported into Sweden.

Norway’s largest non-public sector union then on Wednesday introduced its intention to start blocking car shipments destined for Sweden from Dec. 20.

Finnish transport staff’ union AKT on Thursday confirmed {that a} blockade on Tesla autos earmarked for Sweden would additionally come into power throughout all Finnish ports from Dec. 20.

AKT Chairman Ismo Kokko mentioned collective agreements for staff have been “an important a part of the Nordic labor market system,” in line with Finnish newspaper Helsingin Sanomat.

In the meantime, one in all Denmark’s largest pension funds on Wednesday introduced that it will promote its holdings of Tesla inventory over the U.S. big’s refusal to enter into agreements with labor unions. PensionDanmark offered the shares at a market worth of 476 million Danish krone ($68.8 million), in line with Reuters.

PensionDanmark advised CNBC on Friday that its method to accountable investments is “based mostly on worldwide conventions and agreements, together with the ILO conventions relating to labor rights.”

“If an organization doesn’t dwell as much as our insurance policies, we initially attempt to affect the corporate by way of lively possession – each straight and in coordination with different shareholders. This has additionally been the case in relation to Tesla,” the pension fund mentioned in an emailed assertion.

Ought to the fund assess that it isn’t capable of exert adequate affect on an organization, as has transpired with Tesla, it could determine to exclude that enterprise’ shares from its holdings.

“Seen within the gentle of the truth that the battle is now spreading to Denmark in addition to Tesla’s current very categorical refusal to signal an settlement in any nation, we now have come to the conclusion that we as buyers presently hardly have the chance to affect the corporate. And that’s the reason we at the moment are placing Tesla on our exclusion record,” PensionDanmark added.

Tesla’s coverage of not pursuing collective bargaining is assembly a broad ideological stalemate — such agreements between employers and staff function a lynchpin for Scandinavian financial fashions, which assure staff the best to barter wages, trip, extra time pay and different situations.

Tesla didn’t instantly reply to a CNBC request for remark.

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