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Swedish court rules against Tesla in postal service dispute

Published 07/12/2023, 20:16
TSLA
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Tesla (NASDAQ:TSLA) faced a setback in a legal dispute against Sweden's postal service on Thursday amid an escalating conflict with Nordic trade unions.

A Swedish court ruled that, for now, PostNord is not obligated to distribute license plates to Tesla, which have been withheld by the postal service's employees. This marks the latest development in a dispute regarding collective bargaining agreements.

The pressure on Tesla is mounting in Sweden, Norway, and Denmark, as unions supporting Swedish IF Metall's mechanics—who initiated a strike on October 27—seek a collective agreement with the company.

Tesla considers the Nordics a significant market but maintains a policy of not engaging in collective bargaining, asserting that its staff already receive terms equal to or better than those demanded by IF Metall.

In response to Tesla's stance on refusing such agreements, a major Danish pension fund announced on Thursday that it had divested its holdings in Tesla.

Thursday's court ruling follows Tesla's lawsuit against PostNord due to workers halting the delivery of plates for its new vehicles as part of a sympathy strike. This recent court decision stands as an interim measure preceding the final ruling by the court.

"The district court has decided that PostNord should not be forced make deliveries to Tesla before the case is closed," the Solna district court said in a statement.

Dockworkers, drivers, electricians, and cleaners, among other workers, are either refusing or contemplating refusing to provide services to Tesla in solidarity with IF Metall.

Seko, the union responsible for organizing the PostNord workers engaged in the sympathy strike, expressed its approval of the court's recent decision.

"It's about the Swedish collective agreement model, and there is a consensus on it, both politically and between the parties in the labour market,” said Seko president Gabriella Lavecchia.

In the previous year, Norway stood as Tesla's fourth-largest market based on the number of new car sales, while Sweden claimed the fifth spot.

In a matter linked to the PostNord dispute, a court ruling on November 27 mandated Sweden's transport authority to devise a method to deliver license plates to Tesla. However, the agency has contested this decision by filing an appeal.

Certain Swedish pension funds have advocated for Tesla to engage in the agreement with the union. Nevertheless, they have refrained from divesting their shares in the company—at least for the time being.

Shares of TSLA are up 0.61% in afternoon trading on Thursday.

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