Weeks after mechanics working for Tesla in Sweden walked off the job in late October, members of other unions across the country and elsewhere in Scandinavia joined the strike in solidarity by refusing to provide services to Tesla to put pressure on the car manufacturer to sign a collective agreement with its Swedish workers.
The strike in Sweden, by mechanics represented by the IF Metall union, was the first labor action against Tesla, the American electric vehicle manufacturer founded 20 years ago and led by Elon Musk. In the weeks since, the strike has spread beyond Sweden after port workers in Denmark said they would stop unloading Tesla vehicles at ports across the country.
The last
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A regional pension fund, PensionDanmark sold its Tesla shares, citing the company's “very categorical refusal to reach collective agreements in any country.”
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Finland's transport workers union voted to join a boycott of all Tesla vehicles and components bound for Sweden starting December 20.
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A Swedish court ruling denied Tesla's attempt to end the labor blockade of its mail delivery, including license plates, pending a final ruling.
How it started
Tesla does not make cars in Sweden and the country is a relatively small market for the automaker. Not all mechanics at its seven service centers are participating in the strike. But the job action has gained growing support from other unions, including those for dock, electrical and postal workers, and now from an institutional investor.
Unions say Tesla is flouting Sweden's tradition of collective bargaining. About 90 percent of Swedish workers are covered by these agreements, which apply to non-union employees and set working conditions across all industries. They have a long history in the Nordic countries and are considered crucial to maintaining social cohesion and a high standard of living.
The strikers and the unions championing their cause “are fighting an incredibly important battle right now,” Jan Villadsen, president of the 3F Transport union that represents Danish port workers, said in a statement. “Even if you're one of the richest people in the world, you can't just make your own rules,” he said, referring to Musk.
But the Tesla Model Y is a very popular sport utility vehicle in Sweden and tops the list of electric cars sold this year. Some industry officials in Sweden worry that a prolonged labor battle could hurt business at repair shops forced to stop servicing Tesla vehicles.
What is at stake for the union?
IF Metall wants Tesla to start talks on adopting a collective agreement. The pact would establish the basis for wages and benefits for everyone, although only about 70 of Tesla's 120 mechanics in Sweden belong to the union.
The union believes most of its members at Tesla are staying home, but admits that “some are unfortunately at work despite the strike.”
At least 10 other unions have joined in, refusing to clean Tesla facilities, service its battery chargers, or paint and repair its vehicles. In total, about 150 members of IF Metall and other unions are involved in some way in the strike, the union said.
Union leaders see the blockade against Tesla as a defense of the Swedish model, a way of life that has defined the country's economy for decades. What is essential is cooperation between employers and employees to ensure that both parties benefit equally from a company's benefits.
But organized labor is not as strong in emerging green industries, and union leaders worry that if those jobs remain non-union, they will have lower wages and fewer benefits.
How has Tesla reacted?
Tesla, which began selling cars in Sweden in 2013, has not responded to repeated requests for comment. But Musk has made clear more than once what he thinks about unions, most recently in DealBook Summit In New York.
“I don't agree with the idea of unions,” Musk said, adding that they create “a lord and peasant situation” within the workforce. “I think unions naturally try to create negativity within a company,” he said.
Although it has not signed a collective bargaining agreement, Tesla insists it follows Swedish labor laws, pays employees well and offers them stock options. None of its service centers have been forced to close due to the strike.
When postal workers stopped delivering mail, including plates, to Tesla, the company filed lawsuits against the government agency that produces the plates and PostNord, the postal company the government uses to deliver them. . tesla He demanded that the postal company deliver or hand over the plates it had.
So far, Tesla has not convinced the courts. In late November, a judge ruled that the agency must make the plates available to Tesla, but another court later overturned that ruling. In the other case, a judge said PostNord did not need to hand over plates that were in the possession of postal service workers. Both cases await a final ruling.
How are workers from other countries getting involved?
Solidarity among unions in the Nordic countries is strong, and IF Metall has been in talks with neighboring labor groups to prevent the automaker from evading the blockade of Swedish dock workers by transporting cars across the border from neighboring countries.
The response has reflected how deeply embedded organized labor is in the region: Unions representing transport workers in Denmark, Finland and Norway agreed to stop unloading Sweden-bound Tesla vehicles that arrived at their countries' ports.
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In Denmark, support has spread from beyond unions to institutional investors. PensionDanmark, a pension fund that manages about 317 billion Danish crowns ($46 billion), said Tesla's outright rejection of collective bargaining agreements led it to sell his stake, valued at about 69 million dollars.
Do people in Sweden support the strike?
Support has been divided. Some see the strike as an important statement about their way of life, and others say the union has gone too far and is promoting an unwinnable and, in some ways, unfair fight.
The Model Y was ranked the best-selling electric vehicle in Sweden in November, reflecting continued demand despite the strike.
An official of an association representing local car repair shops also expressed concern that some of its members will be severely affected by the sympathy strikes, which prevent them from carrying out any repairs.
“We see this as an unfortunate situation which, in the event of a prolonged conflict, could threaten Swedish jobs,” said Hanna Alsen, head of negotiations at the Motor Industry Employers' Association.
How long can the strike last?
Strikes are rare in Sweden. Often the threat of a strike is enough for negotiations to begin. IF Metall said it had tried for years to bring Tesla to the negotiating table.
The union has said it is prepared for a protracted fight but would end the action if Tesla agrees to discuss a collective bargaining agreement.
At the same time, Tesla remains the only major American automaker without union representation. The company has remained resistant to unions even in European countries with strong traditions of organized labor, including Germany, where Tesla opened a factory in 2022.
Esben Pedersen, who helped bring Tesla to Europe, said the automaker may have painted itself into a corner in Sweden, adding that the strike is about a broader issue than just wages and benefits.
“This is a cultural clash between two different systems: the Scandinavian labor market model, which emphasizes collective bargaining, and Silicon Valley's spirit of agility to pivot, along with Elon's focus on vertical integration,” he said. “Even if it offers compensation that exceeds requirements, the strike will likely continue until Tesla agrees to a collective bargaining agreement.”
