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The Street
The Street
Ian Krietzberg

Elon Musk's Tesla is facing more union problems

After a historic new contract from the Detroit Three automakers, the United Auto Workers union set its sights on expansion, wasting little time in targeting Tesla TSLA and other non-unionized automakers

After bringing its 40-day strikes to a close, the union said in a statement: "When we return to the bargaining table in 2028, it won’t just be with the Big Three, but with the Big Five or Big Six."

As other automakers — Honda, Toyota and Hyundai — have issued wage increases in an attempt to ward off potential advances from the union, Tesla has remained staunch in its anti-union stance. And while there have not yet been reports of U.S. workers attempting to unionize, an effort that Tesla and CEO Elon Musk have interfered with in the past, similar issues are mounting for the company abroad. 

Related: Investors have finally had enough of Tesla CEO Elon Musk

Though Tesla has no manufacturing plants in Sweden, its cars are serviced at workshops around the country. After Tesla refused to sign a collective bargaining agreement for its employees, around 130 mechanics, backed by the Swedish metal and industrial workers union IF Metall, initiated a strike on Oct. 27. 

Swedish dockworkers joined the strike Nov. 7. As of Friday, the dockworker strike expanded to all ports in the country, preventing the off-loading of new Teslas in Sweden. 

Swedish postal workers have stopped delivering mail to Tesla's offices, and cleaners have refused to clean the company's buildings. 

Sweden's IF Metall began its strike against Tesla Oct. 27. 

JESSICA GOW/TT/Getty Images

If a resolution is not reached by Nov. 24, a further 50 workers at Hydro Extrusion will join the strike, stopping all work on Tesla's vehicles. 

Tesla did not respond to TheStreet's request for comment. 

"We already offer equivalent or better agreements than those covered by collective bargaining and find no reason to sign any other agreement," Tesla told Sweden's TT News Agency. 

IF Metall said in a statement that collective agreements are the basis of the Swedish labor market, with about 90% of workers covered by such agreements. A result of this culture, the union said, is that industrial action has become something of a rarity in Sweden. 

The union is seeking decent and safe working conditions, in addition to wage increases. 

"Even though we have taken industrial action, it is our sincere hope that Tesla will finally start negotiating and sign a collective agreement for their plants in Sweden," the union said. 

Tesla shares ticked down slightly Friday. 

Related: Elon Musk's Tesla has a new union problem on the heels of historic union win

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