Tesla Faces Off Against Nordic Labor Solidarity Tesla has been involved in an escalating dispute with IF Metall, the trade union representing its mechanics in Sweden. After several years of the union trying to get the company to sign a collective bargaining agreement, the mechanics went on strike on October 27—and now Tesla is facing a full-blown campaign of sympathy strikes. Dockworkers are refusing to unload Tesla shipments, electricians will not repair Tesla chargers, cleaning companies will not service Tesla buildings, and now as of Monday, the Swedish postal union is refusing to deliver Tesla mail and packages. Dockworkers are refusing to unload Tesla vehicles at the port of Malmö, SwedenFor the first time anywhere in the world, workers for the US carmaker Tesla have gone on strike. It’s not a coincidence that this strike is happening in Sweden, which has one of the strongest labour movements in Europe. More than 90% of workers are protected by collective bargaining agreements, and the system has strong backing among employees and employers alike. With good reason: the Swedish labour relations model has sustained relative industrial peace between wage-earners and corporations for decades. What started as a minor local disagreement has grown to the point that it could have global implications, with potential ripple effects for labour movements and auto workers across Europe and the US. Tesla doesn’t manufacture cars in Sweden, but it does operate workshops to service its cars. The dispute began when a group of 130 disgruntled mechanics had their request for a collective bargaining agreement rejected. As is customary in Sweden, unions in other sectors came out in solidarity. Dockworkers, mail and delivery workers, cleaners and car painters have so far all agreed to refuse to work with Tesla products. Stockholm’s largest taxi company has also stopped buying new Tesla cars for its fleet. Tesla and other US corporations have certainly misjudged the situation if they expect special treatment in Sweden. Much about Swedish society has changed in the past few decades, but strong support for collective bargaining agreements is still considered the backbone of the country’s economic model.
Sweden has fewer strikes than its Nordic neighbors. This is because the unions are so strong they only need to call for industrial action as a last resort. Despite the rightwing government currently in power in Sweden, calls to change the employment model are rare. Foreign and domestic tech giants have tried to challenge the system, but these attempts are now more likely to backfire. Instead of importing the US’s lax labor standards to Sweden, Tesla may end up jeopardizing its own business model. In an interview, Susanna Gideonsson, who heads the Swedish trade union federation fighting Tesla, sounded remarkably confident. “This will end with the employees winning a collective bargaining agreement, one way or another,” she said. And if they don’t? “Then Tesla can leave the country.” If she is right, this could be a tremendous symbolic victory, which would strengthen the tailwinds for union movements on both sides of the Atlantic. In facing off with its Swedish mechanics, Tesla seems to have underestimated the sheer force of the union movement behind them.
Labor should gather some wins now that China isn't the world's favorite manufacturer anymore with its race to the bottom pricing and secrets sharing. China still has Elon and Tim Cook stroking it off, so who knows how the fight will turn out. Stomping on unions might not be a good look for telsa's old ESG hippy brand, but maybe another round of price cuts will bring it in the range of Elon's slavish prole army.
