Scandinavian Auto Mechanics Participate in Prolonged Labor Dispute Against Automotive Giant Tesla

Strike action at Tesla facility
The conflict focuses on the right of the main labor organization to negotiate pay & employment terms on behalf of its members

In Sweden, approximately 70 car technicians persist to challenge among the globe's richest corporations – the electric vehicle manufacturer. This industrial action at the American automaker's ten Scandinavian service centers has now entered its second anniversary, with minimal sign of a settlement.

One striking worker has been at the electric car company's protest line starting from October 2023.

"It's a tough period," states the worker in his late thirties. And as the nation's chilly seasonal conditions arrives, it is expected to grow more challenging.

Janis spends each Monday with a fellow worker, standing outside an electric vehicle garage on a business district located in southern Sweden. The labor organization, IF Metall, provides shelter in the form of a portable construction vehicle, plus hot beverages and sandwiches.

However it's operations continue normally across the road, at which the service facility appears to operate in full swing.

This industrial action involves a matter that reaches to the heart of Scandinavia's labor traditions – the authority for worker organizations to negotiate pay and conditions on behalf of their workforce. This principle of collective agreement has supported labor dynamics in Sweden for almost one hundred years.

Janis Kuzma on strike
The striking worker states that the continuing industrial action has not been straightforward

Today approximately seventy percent of Swedish workers are members of a trade union, and 90% are covered under negotiated labor contracts. Labor stoppages in Sweden are rare.

This is an arrangement supported across the board. "We favor the right to negotiate directly with the unions and sign labor contracts," states a business representative from the Association of Swedish Enterprise employer group.

But Tesla has upset established practices. Outspoken CEO the company leader has said he "opposes" with the concept of labor organizations. "I simply don't like any arrangement which creates a kind of hierarchical sort of thing," he informed an audience at an event last year. "In my view labor groups attempt to generate negativity within businesses."

The automaker entered the Scandinavian market back in 2014, while IF Metall has for years wanted to establish a collective agreement with the company.

"But they did not respond," states the union president, the organization's president. "We formed the impression that they tried to hide away or evade discussing this with our representatives."

She says the organization ultimately found no alternative except to call a strike, which started on 27 October, last year. "Usually it's enough to make a warning," comments Ms Nilsson. "Employers typically signs the agreement."

However this did not happen in this case.

Marie Nilsson union leader
Union boss Marie Nilsson explains that the industrial action represented the final recourse

The striking mechanic, originally from Latvia, started working for Tesla in 2021. He asserts that wages and work terms were often dependent on the discretion of managers.

He recalls an evaluation meeting where he says he was denied an annual pay rise because he was "failing to meet company targets". Meanwhile, a coworker was reported to have been turned down for a pay rise because he had the "wrong attitude".

However, not everyone went out in the industrial action. Tesla had approximately one hundred thirty mechanics employed at the time the industrial action was initiated. The union says currently around seventy of their represented workers are participating in the action.

The automaker has since substituted these with new workers, a situation there is no precedent since the 1930s.

"The company has accomplished this [found replacement staff] publicly & methodically," says a labor researcher, an analyst at a research institute, a think tank financed by Swedish trade unions.

"It is not against the law, which is important to recognize. However it violates all traditional norms. Yet Tesla doesn't care about norms.

"They aim to become norm breakers. So if anyone informs them, listen, you are breaking a standard, they perceive that as a compliment."

The automaker's Swedish subsidiary refused attempts for interview in an email citing "record deliveries".

In fact, the company has given just a single press discussion in the two years since the strike started.

Earlier this year, the local division's "national manager, the executive, told a business paper that it benefited the organization more not to have a union contract, and rather "to work closely with the team and give workers optimal terms".

Mr Stark rejected that the decision not to enter a labor contract was one made at Tesla headquarters overseas. "We have authorization to take independent such decisions," he stated.

The union is not completely isolated in this conflict. The strike has been supported by a number of other unions.

Port workers in neighbouring Denmark, Nordic countries & Finland, are refusing to process Teslas; waste is not collected from the automaker's Swedish facilities; and recently constructed charging stations are not being linked to power networks across the nation.

Exists one such facility near Stockholm Arlanda Airport, where twenty chargers remain unused. But Tibor Blomhäll, the leader of an owner's club Tesla Club Sweden, states Tesla owners remain unaffected by the labor dispute.

"There exists another charging station six miles from here," he says. "And we can continue to purchase vehicles, we can service our cars, we can power our cars."

Tesla vehicles in Sweden
Notwithstanding the industrial action Tesla's cars remain popular in Sweden

With consequences high on both sides, it is difficult to envision a resolution to the deadlock. IF Metall faces the danger of setting a precedent if it concedes the principle of negotiated labor contracts.

"The concern is how that would spread," states Mr Bender, "and eventually {erode

Alexis Mills
Alexis Mills

A seasoned automotive real estate consultant with over a decade of experience in market analysis and property investments.