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Elon Musk’s Tesla Inc. is at loggerheads with a Swedish labor union demanding the right to negotiate pay deals on behalf of its local employees. While the dispute centers on an estimated 120 to 130 staff in Tesla repair shops, it’s affecting the wider business as workers in other sectors strike to disrupt the electric-car maker’s operations in support of their colleagues. Some new Teslas aren’t being assigned license plates, others can’t be unloaded at ports and some Tesla components aren’t being produced. The company has appealed to the country’s courts to break the deadlock.
Tesla has refused to sign a collective bargaining agreement with Swedish industrial workers’ union IF Metall since 2017. On Oct. 27, the union concluded that all other options had been exhausted and began a strike at the seven repair shops to push Tesla to accept that it represent workers at those sites in wage talks. It’s also demanding that Tesla adhere to Swedish labor-market rules. Collective bargaining agreements are standard practice in Sweden, with around 90% of all working Swedes covered by them; the majority of the remaining 10% work in small businesses with only a few employees.
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