Tesla’s showdown with trade unions across the Nordic region is threatening to spill over to the financial markets after a bunch of pension funds and asset managers sent a letter to Elon Musk urging him to alter course.
Nordic institutional investors managing a complete of $1 trillion in assets said they’re “deeply concerned” about Tesla’s attitude to employee rights in Sweden and demanded the carmaker accept collective bargaining agreements for its staff, in keeping with a letter sent Thursday and seen by Bloomberg News. Signatories to the letter include Denmark’s Velliv Pension & Livsforsikring A/S and AkademikerPension.
The group of at the least 15 investors called out Tesla’s sustainability credentials over its challenge to the so-called “Nordic Model” by not letting mechanics at seven of its Swedish repair shops join to an agreement that covers basic rights resembling minimum pay and gender equality. Additionally they identified how the identical model has benefited Tesla in build up “a major market share” within the region, which trumps even Germany on the subject of deliveries of cars.
While the investors didn’t use the letter to threaten to sell the shares they hold in Tesla, cracks are starting to look elsewhere. Last week saw Danish fund PensionDanmark A/S grow to be the primary major asset manager within the region to publicly dump shares in the electrical vehicle maker consequently of the conflict, selling its $69 million stake.
The dispute that began in October has already upended Tesla’s operations within the region as sympathy actions from other trade unions have spread to dockworkers in neighboring Denmark, Finland and Norway. From next week Tesla could have to move its cars certain for Sweden via trucks from continental Europe.
The escalating blockade has prolonged beyond deliveries to registration plates and even trash collection at Tesla’s premises. Swedish postal employees have for several weeks refused to handle any mail or packages certain for Tesla locations, halting the delivery of license plates to dealerships.
But there are few signs either side of the conflict is able to back down soon. On Thursday, Tesla published a job posting in seek for a Stockholm-based public policy expert who must have “a proven track track record of getting regulatory changes made within the Nordics.” Chief Executive Officer Musk has previously called the situation “insane” and has been fighting back in Sweden with lawsuits to limit the conflict’s impact.
Within the investor letter, the group asked for a gathering with Tesla’s board in early 2024 to debate the matter. “We as Nordic investors acknowledge the last decade old tradition of collective bargaining, and due to this fact urge Tesla to reconsider your current approach to unions,” they wrote.
This Article First Appeared At www.autoblog.com
