Swedish Auto Technicians Participate in Prolonged Labor Dispute Against Carmaker Tesla

Strike action at Tesla facility
This conflict focuses on the authority for the main union to bargain for wages and employment terms on behalf of their membership

Across Sweden, approximately seventy automotive mechanics continue to confront among the globe's richest companies – Tesla. This labor strike at the American automaker's 10 Swedish service centers has now reached two years of duration, and there is little indication for a resolution.

One striking worker has been at the Tesla picket line starting from October 2023.

"It has been a difficult period," remarks the worker in his late thirties. And as Sweden's cold seasonal conditions sets in, it's likely to become more challenging.

The mechanic spends each Monday alongside a fellow worker, standing near an electric vehicle garage on an industrial park located in southern Sweden. The labor organization, the Swedish metalworkers' union, provides accommodation via a portable construction vehicle, as well as hot beverages and light meals.

But it's business as usual nearby, where the service facility seems to operate in full swing.

The strike concerns an issue that goes to the heart of Scandinavia's labor traditions – the right for worker organizations to negotiate wages & conditions representing their workforce. This concept of negotiated labor contracts has underpinned labor dynamics across the nation for almost one hundred years.

Janis Kuzma on strike
Janis Kuzma comments how the ongoing strike has proven easy

Currently approximately 70% of Swedish workers belong of a trade union, and 90% are covered under negotiated labor contracts. Strikes in Sweden are rare.

This is a system welcomed by all parties. "We prefer the right to negotiate freely with the unions and sign labor contracts," says Mattias Dahl from the Association of Swedish Businesses business organization.

However Tesla has upset established practices. Vocal chief executive Elon Musk has said he "disagrees" with the idea of labor organizations. "I simply don't like anything which creates a sort of hierarchical situation," he told listeners in New York in 2023. "In my view labor groups attempt to create conflict within businesses."

Tesla entered Sweden starting in 2014, while IF Metall has for years wanted to establish a collective agreement with the automaker.

"But they did not reply," states Marie Nilsson, the organization's leader. "We formed the impression that they tried to avoid or not discuss the matter with us."

She says the organization eventually saw no other option than to announce industrial action, which started on 27 October, last year. "Typically the threat suffices to issue a warning," says Ms Nilsson. "Employers usually signs the agreement."

But this did not happen in this case.

Marie Nilsson union leader
Union boss Marie Nilsson explains how the industrial action represented the last option

The striking mechanic, originally from Latvia, began employment for Tesla in 2021. He asserts that pay and conditions were often subject to the whim of supervisors.

He recalls an evaluation meeting at which he says he was refused a salary increase on grounds that he "failing to meet Tesla's goals". Meanwhile, a coworker was reported to be rejected for increased compensation due to he had an "inappropriate demeanor".

However, some workers went out in the industrial action. Tesla employed approximately one hundred thirty mechanics working when the strike was initiated. The union states currently around 70 of their represented workers are on strike.

Tesla has long since substituted these with new workers, for which that has no precedent since the era of the 1930s.

"Tesla has done it [found replacement staff] publicly and systematically," says German Bender, a researcher at Arena Idé, a policy organization financed by Swedish trade unions.

"It's not illegal, which is crucial to recognize. But it goes against all traditional norms. But Tesla shows no concern about norms.

"They aim to become convention challengers. So if somebody informs them, listen, you are breaking a standard, they perceive that as praise."

The company's local division declined requests for interview in an email citing "record deliveries".

In fact, the automaker has given just a single press discussion during the entire period after the industrial action began.

In March 2024, the Swedish subsidiary's "country lead", Jens Stark, informed a financial publication that it suited the company more to avoid a union contract, and rather "to work closely with the team and provide workers optimal terms".

Mr Stark denied that the decision to avoid a collective agreement was determined at Tesla headquarters overseas. "Our division possesses authorization to take independent such choices," he said.

IF Metall is not entirely isolated in this conflict. The strike has been supported from several of other unions.

Port workers in nearby Scandinavian nations, Norway & Finland, are refusing to handle Teslas; waste is not removed from the automaker's Swedish facilities; while recently constructed power points remain linked to the grid across the nation.

There is an example near the capital's airport, where twenty charging units stand idle. But a Tesla enthusiast, the leader of enthusiasts group the Swedish Tesla association, says Tesla owners are unaffected by the labor dispute.

"There's another charging station six miles from this location," he comments. "And we can continue to purchase vehicles, we can service our vehicles, we can charge our electric cars."

Tesla vehicles in Sweden
Notwithstanding the strike Tesla's cars remain popular in Sweden

With consequences significant for all parties, it's hard to envision an end to the stand-off. IF Metall faces the danger of establishing a pattern if it concedes the principle of collective agreement.

"The concern is how this could expand," says Mr Bender, "and eventually {erode

Laura Ramos
Laura Ramos

A tech enthusiast and lifestyle blogger passionate about sharing innovative ideas and personal experiences to inspire others.