Sweden United to Make Tesla Give In

Refusing to negotiate with the union IF Metall, Tesla sees a growing national protest while other sectors join the movement.

It is well known that Tesla does not particularly hold unions in high regard. After enjoying the historic movement that pitted the American “Big Three” Ford, GM, and Stellantis against the powerful UAW union, the manufacturer had to yield in Berlin to preserve its European Gigafactory.

To calm the unrest, the American manufacturer announced that employees at its German factory would receive a salary increase in 2024. According to the Wall Street Journal, the German management informed the 11,000 workers at the Berlin site last week that they would receive a 4% raise starting in November. Tesla will also pay a €1,500 bonus in December to compensate for rising inflation and will increase all annual salaries by €2,500 from February 2024 onward.

So, here is a rather unusual backlash, especially since a new front has opened. And while it might not be where you expected, it is perhaps not surprising that this strike is happening in Sweden, one of the most unionized countries in Europe. This first union action against Tesla is also taking place in a country—and more broadly a Scandinavian region—at the forefront of the transition to electric vehicles.

For the past three weeks, Swedish Tesla mechanics have been on strike. At first glance, this does not seem to threaten Elon Musk since the movement appeared to cause no major disruptions. Several Tesla employees even admitted that they saw no reason to participate, considering their current working conditions and salaries satisfactory. But the mobilization took a turn last week when a few dissenters were joined by dockworkers at Swedish ports in Malmö, Södertälje, Gothenburg, and Trelleborg, who no longer unload vehicles from the Californian manufacturer, thus preventing customers from receiving their precious cars. Following this, electricians announced they would stop maintaining the 250 charging stations in the country, and an aluminum supplier has terminated its contract with the manufacturer. Even postal workers have joined the protest, suspending their routes at Tesla office gates!

While IF Metall claims to be prepared for a “very long conflict,” it is likely that negotiations will very soon resume to find a solution. Between this display of European-style unionism and the threats facing its US operations, winter looks set to be tough for Tesla.