Tesla strike intensifies as Sweden’s largest union joins the strike By Reuters

Marie Mannes

STOCKHOLM (Reuters) – Sweden’s largest labor union on Tuesday threw its weight behind a six-month-old strike by Tesla (NASDAQ:) mechanics, escalating the conflict the notoriously union-avoiding company faces with a Nordic workforce committed to collective bargaining. Yes. .

The focus of the dispute, one of Sweden’s longest, is Tesla CEO Elon Musk’s refusal to sign a collective bargaining agreement that would have allowed unions to strike a deal for the entire workforce.

Last month, Musk said the labor storm had passed in the United States, where Tesla’s Model Y is the best-selling car, but the head of the metal workers’ union IF Metal countered that the strike was continuing.

IF Metall confirmed to Reuters that about 44 of its members – about a third of the company’s Swedish mechanics – have downed tools for Tesla, which does not build its vehicles in Sweden and services them locally.

“The strike is ongoing and there are no signs that an agreement will be reached in the near future,” IF Metall chief executive Marie Nilsson said. She said: “We had several meetings with Swedish management during April… but Tesla showed little willingness to discuss ending the dispute.”

More than a dozen trade unions have begun action in support of IF Metall’s strike, the most recent of which is Unionen.

“It is fundamentally important to protect our collective agreement system,” Martin Wastfeldt, head of negotiations at Unionen, a white-collar union with about 700,000 members, told Reuters.

Unionen began the blockade on Tuesday, affecting all Tesla operations at DEKRA Industrial AB, which carries out legally mandated equipment inspections.

If Tesla tries to avoid the blockade by hiring other suppliers, Wastfeldt said Unionen is prepared to take further action.

This may include Unionen members of the company that produces Tesla’s license plates in Sweden, or management, human resources and financial staff of Tesla itself.

“We have these measures in place to address labor market conflicts,” Wastfeldt said.

Tesla did not immediately respond to a request for comment on the ongoing strike. Previously, Swedish employees had said they had conditions as good or better than what the union was demanding.

This fight is at the heart of the company. If the strike breaks down in Sweden or spreads into larger units in places like Germany, which is already dealing with unrelated violent protests, the hard-line stance against unions globally could be weakened.

war chest

The number of people participating in strikes in Sweden is small, but the risks are high.

Allowing companies involved in the green and digital transition to operate in Sweden without collective agreements would weaken trade unions and threaten the Swedish model, forcing the state to take greater control.

“It is very important for IF Metall not to lose. They can never do that,” said union expert Anders Kjellberg.

Swedish unions are encouraged by past successes. Unionen signed a collective agreement with payments services group Klarna last year. IF Metall’s strike fund alone has a sufficient war chest of over 10 billion Swedish kroner ($921 million).

But there are few signs that the conflict will end anytime soon.

Since December, Nordic dock workers have blocked Tesla from shipping cars to Sweden by ship. But while the union’s action has caused some confusion, there are few signs it will hurt Tesla’s sales, with new car registrations in Sweden largely keeping pace with the market.

Since February, Tesla has brought in about 25 temporary workers from other European countries, some of whom have been hired for multiple short-term stays.

It’s unclear to what extent this is linked to the strike, but a review of labor registrations shows this contrasts with previous years when no such workers came in.

Tesla did not immediately respond to a request for clarification.

Although the conflict currently appears to be at a stalemate, Kjellberg pointed to a possible path toward a final resolution.

For example, Amazon (NASDAQ:) entered into a collective agreement to have its Swedish warehouses managed by a third-party company, allowing its U.S. parent company to avoid this.

“IF Metall can last for months or even years because you can’t give it up,” Kjellberg said. “But it’s possible that, over time, both sides will want to find a solution.”

($1 = 10.8617 Swedish crowns)