US electric-car manufacturer surprised by Swedish labor union

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【Summary】Tesla is facing its first strike ever after refusing to negotiate with the Swedish trade union IF Metall. The strike, which is the first formal labor industrial action against Tesla worldwide, was initiated by IF Metall after Tesla's Swedish subsidiary, TM Sweden, refused to negotiate a collective agreement for its employees. The strike initially affected union members among Tesla's own employees, but it has now been expanded to all repair shops servicing Tesla vehicles in Sweden.

FutureCar Staff Oct 31, 2023 9:27 AM PT

US electric-car manufacturer surprised by Swedish labor union

Tesla is facing its first-ever strike after refusing to negotiate with the Swedish trade union IF Metall. The strike, which is taking place in Sweden, is the first formal labor industrial action against Tesla worldwide. The strike was initiated by IF Metall, which has been trying to negotiate a collective agreement for Tesla employees in repair shops across the country for the past five years.

Initially, the strike notice was limited to union members among Tesla's own employees, but after a meeting between TM Sweden (Tesla's Swedish subsidiary) and IF Metall, the company's representatives withdrew from further negotiations. In response, IF Metall expanded its strike notice to include all repair shops servicing Tesla vehicles in Sweden. This means that an additional 470 workers at 16 work sites will be affected in the next phase of the strike.

The strike has significant symbolic significance for Tesla. While the material cost to the company of a Swedish union contract would be negligible, the symbolic price could be much higher. A concession in Sweden could bolster union demands in other countries where a larger portion of Tesla's employees work. Tesla is also facing pressure from German unions and the ongoing United Auto Workers strikes in the United States.

In addition to the economic dimensions, there are also political considerations at play. Union contracts are seen as crucial to fighting inequality and ensuring decent jobs in the rapidly growing 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 the union-busting methods Tesla has employed in the US will not be tolerated in Sweden.

IF Metall is highly motivated to challenge Tesla and has carefully considered its options. The general secretary of IndustriALL, which represents 50 million workers in 140 countries, stated that defeating the Tesla business model is a priority, and Sweden is the best place to start.