Nordic investors urge Tesla to back down in Swedish labour dispute

STOCKHOLM (Reuters) -A group of Nordic institutional investors said in a letter to Tesla (NASDAQ:) on Thursday they were deeply concerned by the conflict between the company and labour unions in Sweden, and asked it to reconsider its approach to collective bargaining.

Tesla is facing a backlash from unions and some pension funds in the region over its refusal to accept a demand from Swedish mechanics for collective bargaining rights covering wages and other conditions.

A group of Nordic investors, which includes Norway’s largest pension fund KLP, Sweden’s Folksam and Denmark’s PFA and PensionDanmark said the Swedish labour market model enabled the Nordics to thrive. The model means employers and unions agree on working conditions and salaries with very little involvement of the government.

“We as Nordic investors acknowledge the decade old tradition of collective bargaining, and therefore urge Tesla to reconsider your current approach to unions,” the investors, which have assets of approximately one trillion dollars under management, said in the letter.

Tesla has managed to avoid collective bargaining agreements with its roughly 127,000 workers, and CEO Elon Musk has been vocal about his opposition to unions.

The labour dispute between Tesla and a Swedish trade union has sparked sympathy strikes across the region and prompted some pension funds to sell their shares in the company.

Tesla, which has revolutionised the electric car market, says its Swedish employees have as good or better terms than those the union is demanding.

The company did not immediately respond to a request for comment.

Source link