Sweden’s largest union, Unionen, closed on Tuesday behind the strike that has been going on for six months the Teslamechanics, thereby exacerbating the conflict between the notoriously anti-union company and the Nordic workers bound by collective bargaining agreements.
The focus of the strike, which is one of the longest in Sweden, is the Tesla boss’s refusal Elon Musk (52) to sign a collective agreement. This could enable the union to negotiate on behalf of the entire workforce. For Musk, the issue seems to be off the table anyway: last month, the CEO said that the strike in the country was over. A representative of the metal workers’ union IF Metall now contradicted him and said the strike would continue.
“Tesla has shown little willingness”
IF Metall confirmed to Reuters that about 44 of its members – about a third of the company’s Swedish mechanics – have laid down tools at Tesla. “The strike is ongoing and there are no signs that we will reach an agreement in the near future,” said Marie Nilsson, head of IF Metall. “We held some meetings with Swedish management in April, but … Tesla has shown little willingness to discuss an end to the conflict.”
More than a dozen unions now support the IF Metall strikes, with Unionen being the youngest and largest. “It is fundamental to protect our collective bargaining system,” Martin Wastfeldt, head of negotiations at Unionen, an employee union with around 700,000 members, told Reuters.
Unionen began a blockade on Tuesday affecting all work for Tesla at DEKRA Industrial AB, which carries out legally required system inspections. Tesla does not manufacture vehicles in Sweden but services them locally. Tesla’s Model Y is the best-selling car in the country.
Unionen is considering further measures
If Tesla tries to circumvent the blockade by commissioning other service providers, Unionen is prepared to do more, said Wastfeldt. This could affect union members who License plates for Tesla made in Sweden. In addition, employees from administration, human resources and finance at Tesla itself could be included. “We have these measures in our arsenal to resolve conflicts in the labor market,” said Wastfeldt.
Tesla did not comment on the allegations when contacted by Reuters. However, the company had already stated that its Swedish employees had conditions that were as good or even better than those demanded by the union.
The fight is crucial for the company, whose tough stance against unions worldwide could be undermined if it backs down in Sweden or if the strike spreads to larger units in countries like Germany encroaches on where it already is has to contend with violent protests by activists in Grünheide.
“It is very important for IF Metall not to lose”
The number of strikes in Sweden may be small, but the stakes are high. Allowing companies linked to the green and digital transition to operate in Sweden without collective agreements would undermine unions and threaten the Swedish model, forcing the state to take more control.
“It is very important for IF Metall not to lose. They simply cannot do that,” said union expert Anders Kjellberg.
The Swedish unions have drawn courage from past successes – Unionen became the payment service provider last year Klarna included in a collective agreement – and the coffers are well-filled with more than 10 billion Swedish crowns ($921 million) in IF Metall’s strike fund alone.
Dock workers have been blocking Tesla’s car deliveries since December
The conflict shows no signs of being resolved soon. Nordic dock workers have been blocking Tesla’s car deliveries to Sweden by ship since December. Although the union actions are causing disruption, Tesla’s sales in Sweden remain stable. New registrations are keeping pace with the market.
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Tesla has also recruited around 25 temporary workers from other European countries since February. Some came for several short assignments. Whether this is related to the strike remains uncertain. However, an examination of work registrations showed that no comparable recruitment took place last year. Tesla has not yet commented on this.
While the conflict seems stuck at the moment, Kjellberg pointed to possible avenues for a possible solution. Amazon for example, its Swedish warehouses are managed by a third-party company that has signed collective bargaining agreements so that the US parent company can avoid this.