Tesla faces a setback in acquiring Swedish license plates as the court rules against the initial judgment. In November, a judge had mandated that postal workers, who stood in solidarity with unionized Swedish mechanics and refused to deliver the plates, must allow Tesla to collect them.
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Emma Hansson, chairman of IF Metall Stockholms län stands in front of the electric car company Tesla's Service Center in Segeltorp, south of Stockholm, as workers strike for the signing of a collective agreement on October 27, 2023.
Refusing to Deliver Swedish License Plates
Tesla's legal setback continues as a Swedish court ruled against the electric carmaker in a dispute with the country's postal service. The court determined that PostNord, at least temporarily, is not obligated to deliver license plates to Tesla, which were being withheld by postal workers.
The Verge reported that this development marks the latest twist in an ongoing conflict over collective bargaining agreements. Under the leadership of billionaire Elon Musk, Tesla is confronting mounting challenges in the Nordic region, particularly in Sweden, Norway, and Denmark.
The source of tension lies in the support extended by unions to IF Metall mechanics in Sweden, who initiated a strike on October 27, demanding a collective agreement with Tesla.
Adding to the pressure on Tesla, a significant Danish pension fund announced its decision to divest from Tesla holdings, citing the carmaker's reluctance to engage in such agreements. Furthermore, Denmark's largest trade union has joined the strike actions initiated by Tesla workers in Sweden.
Initiating Lawsuit Against PostNord
The recent court ruling emerged as a result of Tesla initiating legal proceedings against PostNord, prompted by the postal service workers' decision to abstain from delivering plates for Tesla's new cars as part of a sympathy strike.
While awaiting a final judgment, The Guardian reported that Solna district court, in an interim decision, determined that PostNord is not obligated to resume deliveries to Tesla until the case is resolved.
A variety of professionals, including dock workers, drivers, electricians, and cleaners, are either refraining from providing services to Tesla or considering such actions.
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Despite encountering resistance due to its avoidance of collective bargaining, Fortune reported that Tesla places significant importance on the Nordic countries as key markets. The company argues that its staff enjoys terms on par with or superior to those sought by IF Metall.
Elon Musk reiterated his opposition to unions last week, expressing his disagreement with the idea of unions and his aversion to anything that creates a "lords-and-peasants" dynamic.
In the previous year, Norway secured its position as Tesla's fourth-largest market for new car sales, with Sweden closely following as the fifth-largest. Noteworthy is the consistent dominance of Tesla's Model Y as the best-selling car in Sweden throughout the current year
In a matter connected to the PostNord dispute, a court ruled on November 27, mandating the Swedish Transport Agency to devise a method for delivering license plates to Tesla. The agency has contested this decision by filing an appeal.
While certain Swedish pension funds have encouraged Tesla to enter into an agreement with the union, they have refrained from divesting their shares thus far.
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