Tesla sues Swedish state over strike fallout, Legal News, ET LegalWorld | Court Practice News


Electric carmaker Tesla on Monday filed a lawsuit against the Swedish state over a strike by postal workers that is blocking deliveries of license plates for its new cars.

Tesla is currently facing strikes on multiple fronts in Sweden over its refusal to sign a collective wage agreement for its mechanics.

On November 20, Swedish postal workers joined in and began halting deliveries to Tesla offices and repair shops.

As licence plates for new cars are only delivered by mail in Sweden, the blockade could stop new Teslas hitting the road there, something Tesla CEO Elon Musk branded as “insane”.

Musk has long rejected calls to allow the company’s 127,000 employees worldwide to unionise.

However, collective agreements with unions are the basis of the Swedish labour market model, covering almost 90 percent of all employees and guaranteeing wages and working conditions.

Tesla has asked the courts to compel the Swedish Transport Agency to make sure plates for vehicles registered with the agency “come into Tesla’s possession”.

Tesla also asked the court to impose a fine of one million kronor ($96,000) if the Swedish Transport Agency fails to comply.

The agency told AFP last week that it was only able to deliver the plates via postal carrier Postnord, as it was bound to use it under a contract that applies to all government agencies.

In a separate suit, Tesla wants the courts to compel Postnord, which is owned by the Swedish and Danish states, to hand over all deliveries addressed to Tesla.

Some 130 mechanics at 10 Tesla repair shops in seven cities across Sweden walked off the job on October 27, according to trade union IF Metall.

The strike has since expanded to include other repair shops that service Tesla, and dock workers have stopped unloading Tesla cars at Swedish ports.

In addition to IF Metall, nine other unions have announced “sympathy measures”.

  • Published On Nov 28, 2023 at 12:48 AM IST

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