Tesla Sues Swedish Transportation Agency and Postal Service Over License Plate Standoff

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ICARO Media Group
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27/11/2023 21h40

In a bid to resolve a union strike affecting license plate deliveries, electric vehicle (EV) giant Tesla has filed a lawsuit against Sweden's transportation agency and postal service. The company, known for its non-unionized workforce, faces a standoff with workers demanding a collective bargaining agreement.

The Swedish Transport Agency has received an interim decision from a district court ordering it to consent within seven days to Tesla's request to collect license plates or face heavy fines. However, the agency has stated that it is too early to determine the implications of the decision.

According to The Associated Press, Tesla has described the actions of the Swedish Transport Agency as a "unique attack" and is seeking a fine of 1 million kronor (US$95,803) in its lawsuit. The registrations are currently withheld due to a strike by state-owned postal service PostNord, which has stopped supplying plates to Tesla.

Tesla's lawsuit alleges that the Swedish Transport Agency has refused the automaker's request to pick up the license plates itself or find an alternative channel for delivery. Two lawsuits have been filed, one against the agency and another against PostNord.

The Swedish Transport Agency spokesperson, Ann-Sofie Masth, confirmed the lawsuit and revealed the court's interim decision. Masth stated that the agency is analyzing the announcement and considering its implications. She emphasized that it is too early to determine the exact consequences and necessary measures.

Tesla's policy against signing collective bargaining agreements has faced criticism. The company argues that its employees already enjoy favorable terms and conditions, rendering unions unnecessary. This stance echoes previous statements made by Tesla CEO Elon Musk in 2017 when confronted with allegations of poor working conditions and low pay at the company's California factory.

The strike initiated by IF Metall, Sweden's prominent manufacturing union, began on October 27. Although Tesla does not have a manufacturing plant in the country, several service centers have stopped working on Tesla vehicles in solidarity with the strike. Other unions in Sweden, including dockworkers, cleaners, and electricians, have joined the strike as a demonstration of unity. The strike received further support when a component maker participated in a sympathy action.

In its court filing, Tesla claimed that the decision to withhold license plates is harmful to "a large number of consumers who ordered a new car from Tesla." However, an IF Metall representative stated that the strike is aimed at ensuring safe working conditions for its members.

The Swedish Transport Agency maintains a contrasting view, and its spokesperson has stated that Tesla's decision to take the issue to court is within its rights. The lawsuit now awaits further legal proceedings to determine the outcome of the license plate standoff.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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