Business

Tesla is suing Sweden after postal workers allegedly block license plate deliveries

Tesla filed a lawsuit against the Swedish Transport Agency on Monday after postal workers began to block deliveries of license plates for new vehicles produced by the Texas-based automaker, as reported by APO News on Monday.

The lawsuit, filed by Tesla, a globally non-unionized entity, alleges that the government agency’s failure to provide access to registration plates constitutes an “unlawful discriminatory attack directed at Tesla,” according to leading business publication Dagens Industri.

Mikael Andersson, spokesperson for the agency, informed local broadcaster SVT that the lawsuit was filed in the early morning, and the agency had not yet reviewed the details.

The labour unrest began on October 27 when 130 members of the powerful metalworkers’ union IF Metall went on strike at seven workshops across the country where Tesla’s popular electric cars are serviced.

Their primary demand is that Tesla sign a collective bargaining agreement, a standard practice for most employees in Sweden. Despite not having a manufacturing plant in Sweden, Tesla has several service centres in the country.

As a result of the strike, Swedish mechanics ceased servicing Tesla vehicles, and the postal workers’ union, along with dockworkers at the country’s major ports, joined in solidarity with IF Metall’s demands.

This collective action aimed to exert pressure on Tesla to comply with the metalworkers’ requirements.

Last week, Elon Musk, Tesla’s CEO, expressed his frustration on the social media platform X (formerly Twitter), which he owns, calling it “insane” that Swedish postal workers were refusing to deliver license plates for new vehicles.

IF Metall contends that Tesla Sweden has refused to sign a collective agreement, violating fundamental principles in the Swedish labour market.

The union emphasizes that such agreements are integral to the Swedish model and seeks consumer understanding, citing their actions as a means to ensure safe working conditions for their members.

In response to the disruptions, Tesla has petitioned the district court to compel the Swedish Transport Agency to fulfil its obligation to deliver license plates.

The legal proceedings are unfolding against the backdrop of heightened tensions between Tesla and the labour unions in Sweden.