Swedish Unions Take Action Against Tesla, Drawing Attention to Their Cause

More than a week after Tesla mechanics in Sweden went on strike to urge the U.S. automaker to agree to a collective labor agreement, union officials have announced that Tesla representatives will meet with the union on Monday. Tesla has not yet responded to the request for comment.

Although Tesla does not manufacture cars in Sweden and the country represents a relatively small market for the automaker, the strike by dozens of mechanics is starting to have an impact. Dockworkers at the country’s four largest ports have declared that they will stop unloading shipments of Teslas on Tuesday in support of the strikers.

The trade union IF Metall has long been urging Tesla to engage in talks about adopting a collective agreement that would establish the basis for wages and benefits for approximately 120 mechanics employed by Tesla at its service facilities in Sweden. These types of agreements cover about 90 percent of all workers in Sweden.

Since the strike was called on October 27th, many union members who are mechanics have been staying home, causing disruptions in service appointments for some Tesla drivers. However, not all union members have participated in the strike, and certain service facilities have reportedly been largely unaffected.

“It is not an easy thing to be on strike,” acknowledges Jesper Pettersson, a spokesman for IF Metall.

Nevertheless, the strike, combined with the potential threat of other unions joining the action, appears to have forced Tesla to come to the negotiating table. A meeting between the union and company representatives has been scheduled for Monday.

Sweden has the third-highest share of electric vehicle sales in the world, accounting for 32 percent, following Norway and Iceland, as reported by the World Resources Institute. Tesla has a growing fan base in Sweden, with its Model Y being the top-selling electric vehicle in the country this year.

Tesla’s owner, Elon Musk, has consistently resisted attempts to unionize Tesla workers. In 2018, Musk even threatened the compensation of U.S. employees seeking to join a union, a statement which later violated labor laws. This resistance to unions and the ongoing strike in Sweden may be perceived by Tesla as posing a risk of potential contagion to other markets.

In Germany, IG Metall, a union affiliated with IF Metall in Sweden, has been working to organize Tesla’s factory in Grünheide, located outside of Berlin.

In the United States, following the United Automobile Workers’ (UAW) successful six-week wave of walkouts at the three major Detroit automakers, union leaders have set their sights on organizing nonunion factories across the country, including Tesla’s U.S. workers.

The power of organized labor in Sweden is significant, with approximately 70 percent of the country’s workforce belonging to a union. Swedish law also permits solidarity strikes to support other unions’ efforts.

For instance, in 1995, when Toys “R” Us refused to accept a collective labor agreement, its retail workers in Sweden initiated a strike. Despite only employing 80 people in the country, the strike was bolstered by support from other unions, including postal, transport, and municipal workers who disrupted mail delivery and waste removal. After three months, the company eventually signed an agreement.

In support of IF Metall, the Swedish Transport Workers’ Union announced that dockworkers would cease unloading Tesla cars from noon on Tuesday onwards.

“When IF Metall asks for Transport’s support, it is important and obvious that we help to stand up for the collective agreement and the Swedish labor market model,” stated the transport workers’ union.

IF Metall has not yet sought support from other unions, pending the outcome of Monday’s talks, according to Mr. Pettersson.

Collective agreements negotiated between employers and unions within each industrial sector play a crucial role in setting employment terms in Sweden. IF Metall is seeking an agreement that would provide Tesla workers with a wider insurance package, guaranteed training for transitioning to different jobs if their current ones are cut, as well as annual wage increases. These agreements also cover workers who are not union members.

It’s worth noting that not only foreign-based firms, but also certain homegrown enterprises such as Klarna, the buy-now-pay-later giant, and streaming provider Spotify, have pushed against Sweden’s century-old model of collective bargaining agreements. They argue for the need to remain flexible and adaptable in the rapidly evolving tech industry.

However, after eight months of negotiations, two unions representing Klarna employees recently threatened to go on strike next week. Fortunately, they reached an agreement late Friday, avoiding the strike.