Scandinavian Auto Mechanics Participate in Prolonged Labor Dispute Against Carmaker Tesla

Strike action at Tesla facility
This conflict centers on the right of the main union to bargain for wages & employment terms for their membership

Across Sweden, around seventy car technicians continue to confront among the globe's wealthiest corporations – the electric vehicle manufacturer. This industrial action at the US automaker's 10 Scandinavian service centers has currently reached its second anniversary, with minimal indication for a settlement.

Janis Kuzma has been at the electric car company's picket line starting from the autumn of 2023.

"It has been a tough time," remarks the worker in his late thirties. And as Sweden's chilly winter weather sets in, it's likely to grow even tougher.

Janis devotes every start of the week with a fellow worker, positioned outside an electric vehicle garage within an industrial park in Malmö. His union, IF Metall, supplies accommodation in the form of a portable construction vehicle, plus coffee & sandwiches.

But it remains business as usual nearby, where the workshop appears to be in full swing.

The strike concerns a matter that reaches to the heart of Scandinavia's industrial culture – the authority of trade unions to negotiate wages and working terms representing their members. This principle of negotiated labor contracts has underpinned labor dynamics in Sweden for almost one hundred years.

Janis Kuzma on strike
Janis Kuzma states that the ongoing industrial action has proven easy

Today approximately seventy percent of Swedish employees belong to labor organizations, while ninety percent are covered under negotiated labor contracts. Labor stoppages in Sweden occur infrequently.

It's a system supported across the board. "We favor the ability to bargain freely with the unions and sign collective agreements," says a business representative from the Association of Swedish Enterprise business organization.

However Tesla has upset established practices. Outspoken CEO the company leader has stated he "disagrees" with the idea of labor organizations. "I just disapprove of anything which creates a sort of lords and peasants situation," he informed listeners at an event in 2023. "In my view the unions try to generate conflict within businesses."

Tesla came to Sweden back in 2014, and the metalworkers' union has long wanted to secure a labor contract with the automaker.

"Yet they wouldn't respond," states the union president, the organization's president. "And we got the belief that they attempted to hide away or not discuss this with us."

She says the organization ultimately found no alternative except to call a strike, which started on 27 October, last year. "Typically the threat suffices to issue the threat," says Ms Nilsson. "The company typically agrees to the agreement."

But not in this case.

Marie Nilsson union leader
Labor leader Marie Nilsson states how the strike was the last option

Janis Kuzma, originally of Latvian origin, began employment for Tesla several years ago. He claims that pay and work terms were often subject to the discretion of supervisors.

He remembers a performance review at which he states he was denied an annual pay rise on grounds he was "failing to meet company targets". At the same time, a coworker was reported to be turned down for increased compensation due to he had an "inappropriate demeanor".

Nevertheless, some workers participated on strike. The company employed some one hundred thirty technicians employed when the industrial action was initiated. IF Metall says that today approximately 70 of its members are on strike.

The automaker has since replaced the striking workers with new workers, for which there is not occurred since the 1930s.

"The company has accomplished this [found replacement staff] openly & systematically," states German Bender, an analyst at a research institute, a think tank financed by Swedish trade unions.

"It is not illegal, this being crucial to understand. But it goes against all established norms. Yet Tesla doesn't care about norms.

"They want to be convention challengers. Thus when somebody informs them, hey, you are breaking a standard, they perceive this as praise."

The company's local division refused attempts for interview via correspondence mentioning "all-time high vehicle shipments".

Indeed, the automaker has given just a single press discussion in the two years after the industrial action started.

Earlier this year, the Swedish subsidiary's "national manager, Jens Stark, told a financial publication that it suited the company better to avoid a union contract, and rather "to collaborate directly with the team and provide workers optimal terms".

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

The union is not completely isolated in this conflict. The strike has received backing from several of labor organizations.

Dockworkers in neighbouring Scandinavian nations, Norway and Finland, decline to process Teslas; waste is no longer removed from the automaker's Swedish facilities; while recently constructed power points remain connected to the grid across the nation.

There is an example near Stockholm Arlanda Airport, at which twenty charging units remain unused. However Tibor Blomhäll, the leader of enthusiasts group Tesla Club Sweden, states vehicle owners are unaffected by the strike.

"There exists an alternative power point 10km from this location," he comments. "And we can continue to buy our cars, we can service our cars, we can charge our cars."

Tesla vehicles in Sweden
Notwithstanding the strike Tesla's cars continue to be in demand across Scandinavia

With consequences significant on both sides, it is difficult to see a resolution to the deadlock. IF Metall faces the danger of setting a precedent if it concedes the fundamental concept of negotiated labor contracts.

"The concern is how this could expand," says the researcher, "and eventually {erode

Renee Cox
Renee Cox

A tech enthusiast and digital strategist with over a decade of experience in emerging technologies and content creation.