Updated 18 December 2023 at 21:25 IST
Swedes rally behind Tesla mechanics' strike for collective bargaining
Tesla's stance against IF Metall has caused Nordic unions to strike, prompting share divestment and eroding confidence among Swedes.
The majority of Swedes are backing the ongoing strike by mechanics at Tesla workshops in Sweden according to a recent survey conducted by Novus. The strike, initiated by trade union IF Metall in October, revolves around the contentious issue of the right to collective bargaining. According to the poll commissioned by the daily Svenska Dagbladet, 58 per cent of respondents support the union's stance, while only 20 per cent believe the industrial action is unjustified.
Tesla's resistance to IF Metall's demand has triggered a broader backlash from unions and pension funds throughout the Nordic region, leading to sympathy strikes and divestment of the company's shares. The dispute has also taken a toll on Tesla's reputation, with a significant majority of Swedes expressing a loss of confidence in the company during the conflict.
The Nordic region is crucial for Tesla, and the strike has prompted concerns about the company's labour practices. Tesla, under the leadership of CEO Elon Musk, has consistently opposed entering into collective bargaining agreements with its workforce. The Swedish model, which involves direct negotiation between employers and unions with minimal government intervention, has garnered strong support amongst those polled by Novus.
Novus CEO Torbjorn Sjostrom emphasised the widespread backing for the Swedish model and noted that confidence in Tesla has diminished amongst Swedes amid the ongoing labour dispute. The situation highlights the growing tensions between Tesla and unions in the Nordic region, reflecting broader challenges faced by the company in navigating labour relations.
(With Reuters Inputs)
Published By : Leechhvee Roy
Published On: 18 December 2023 at 21:25 IST