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Market Chatter: Tesla Faces Escalating Labor Dispute in Sweden as Unionen Backs Strike
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Market Chatter: Tesla Faces Escalating Labor Dispute in Sweden as Unionen Backs Strike
May 14, 2024 7:41 AM

10:12 AM EDT, 05/14/2024 (MT Newswires) -- Tesla (TSLA) is facing heightened labor unrest in Sweden, with labor group Unionen announcing its support for the six-month-old strike by metal workers' union IF Metall to push for a collective bargaining agreement, Reuters reported Tuesday.

Unionen, Sweden's largest union with around 700,000 members, initiated a blockade on Tuesday, impacting all Tesla-related work at DEKRA Industrial AB, which is responsible for legally mandated equipment inspections, the report said.

More than a dozen unions are already supporting IF Metall's strike, the report said.

Chief Executive Elon Musk said last month that the dispute had subsided, but an IF Metall spokesperson said the strike is still ongoing, according to the report.

IF Metall told Reuters that approximately 44 of its members, representing roughly a third of Tesla's Swedish mechanics, have stopped working. Tesla does not manufacture vehicles in Sweden but provides services, the report said.

Unionen, IF Metall and Tesla did not immediately respond to MT Newswires' requests for comment.

Shares of Tesla were up 2.9% in recent Tuesday trading.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price: 176.85, Change: +4.96, Percent Change: +2.89

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