Electric-car manufacturer in the US surprised by Swedish labor union

author: FutureCar Staff    

Tesla is facing its first-ever strike after refusing to negotiate with the Swedish trade union IF Metall. The strike, which took place in Sweden, is the first formal labor action against Tesla worldwide. The strike was initiated by IF Metall, as Tesla's Swedish subsidiary had refused to negotiate a collective agreement for its employees in repair shops across the country. Initially, the strike notice was limited to union members among Tesla's own employees, but after a meeting between TM Sweden and IF Metall, the company's representatives withdrew from further negotiations, leading IF Metall to expand the strike notice to all repair shops servicing Tesla vehicles in Sweden.

The strike will affect an additional 470 workers at 16 work sites, starting on Friday. Workers in the targeted shops will not be allowed to work on Tesla vehicles, including servicing, repairs, or preparing new cars for shipping. The strike is significant for Swedish unions as it is seen as necessary to safeguard the country's recognized labor-market model. Cutting labor costs by refusing to negotiate collective agreements is considered unfair competition and a potential downward pressure on wages and working conditions in other companies.

In the Swedish labor-market model, both workers and employers are organized. Tesla could offer its employees the sectoral collective agreement by joining the Swedish Confederation of Transport Enterprises, but the company has not taken this option. The conflict with Tesla is significant for unions as securing collective agreements for jobs in the growing electric-vehicle market is crucial to ensuring good jobs and a just transition.

The conflict also has symbolic significance for Tesla. While the material cost of a Swedish union contract would be negligible, a concession in Sweden could bolster union demands in other countries where Tesla has a larger workforce. The company is already facing pressure from German and American unions. In the United States, the rolling United Auto Workers strikes at major vehicle manufacturers have affected over 40,000 workers and could lead to higher labor costs for Tesla's competitors.

Aside from economic dimensions, there are also political considerations. Union contracts are seen as crucial in fighting inequality and ensuring decent jobs in the electric-vehicle industry. Politicians, including US President Joe Biden, have shown support for unions in the industry. The outcome of the Swedish strike is uncertain, but it is clear that Tesla's union-busting methods used in the US will not be tolerated in Sweden. IF Metall is highly motivated to challenge Tesla and defeat its business model.

FutureCar Staff