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tesla (NASDAQ:TSLA) is facing additional pressure from prominent Nordic investors, such as Norway's largest pension fund KLP, Sweden's Folksam and Denmark's PFA and PensionDanmark, over the company's approach to working with unions. The original confrontation with a small number of repair shops in Sweden has reached the point where big-name investors are taking notice.
The group of large Nordic institutional investors has clearly reminded the electric vehicle manufacturer that the Swedish labor market model has allowed the Nordic region to prosper. In particular, in the model employers and unions have agreed to negotiate conditions and wages without involving governments. “We, as Nordic investors, recognize the decade-long tradition of collective bargaining and therefore urge Tesla to reconsider its current approach to unions.” fixed one of the investment groups.
In Sweden, 15 unions have joined the strike at the request of the IF Metall union and the transporters are refusing to deliver the vehicles. Over the past week, more unions elsewhere in Scandinavia have pledged not to unload or transport Tesla vehicles destined for customers in the Swedish market.
Wedbush Securities analyst Dan Ives warned that while the Scandinavian situation might seem like a geographically limited situation that Tesla (TSLA) is fighting against, it could also be a major issue for unions globally as it develops.
“If Tesla gives in to the unions over this ongoing dispute, it could create a growing wildfire that eventually reaches the UAW and the United States in 2024,” he said. However, the alternative of playing hardball in Scandinavia also poses a risk to the Tesla (TSLA) brand and, eventually, European sales.
