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AL CIRCLE

Swedish unions escalate pressure on Tesla as mechanics rally for collective bargaining; Hydro workers poised to join strike

EDITED BY : 2MINS READ

The pressure is escalating on the United States carmaker Tesla in Sweden from unions supporting mechanics to reach a collective bargaining agreement, with workers at one of Tesla's suppliers poised to initiate a strike next week, amplifying the challenges for the company. Despite not having a manufacturing facility in Sweden, Tesla's electric vehicles undergo servicing at workshops nationwide. Roughly 130 mechanics associated with the Swedish union IF Metall commenced a strike on October 27 at these service centres.

Swedish unions escalate pressure on Tesla as mechanics rally for collective bargaining; Hydro workers poised to join strike

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Dockworkers and car dealerships have joined forces in solidarity with the ongoing mechanics' strike, refusing to handle Tesla products. According to a spokesperson, approximately 50 unionised workers at Hydro Extrusions, a subsidiary of Norwegian aluminium and energy company Hydro, are set to halt work on Tesla car products next Friday.

Notably, the rest of the Vetlanda plant, which specialises in producing aluminium profiles—aluminium alloys transformed into various shapes—will continue its operations. This marks the first instance of a Tesla supplier in Sweden showing support for the mechanics' strike by ceasing production.

On November 6, the car manufacturer informed IF Metall that it had no intention of entering into a collective agreement, as stated by the union.

IF Metall spokesperson Jesper Pettersson expressed the union's desire for Tesla Sweden to engage in a collective agreement, emphasizing the hope for a swift resolution to the conflict. In a parallel context, German unions have urged the carmaker to adopt a comparable agreement for its 11,000 employees in Gruenheide, located near Berlin.

Earlier this month, there was a 4 per cent increase in wages; however, the German union IG Metall asserts that the current wage levels still lag collective agreement standards by approximately 20 per cent.

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