Tesla to pay severance to striking Swedish mechanics as dispute ends

Tesla does not manufacture vehicles in Sweden, but more than 120 mechanics service its electric cars in the country. After Tesla rejected their demand for a collective bargaining agreement, the mechanics went on strike on 27 October 2023 under the leadership of trade union IF Metall. Swedish dockworkers temporarily joined the industrial action, while other unions also backed the mechanics.

IF Metall has now announced that the dispute and related strike action will end on 19 August. The union did not disclose how many workers accepted compensation from Tesla or how much they received. Despite ending the strike, IF Metall maintains its criticism of Tesla in its statement on the dispute.

“We can conclude from this [the severance payments, editor’s note] that Tesla is so vehemently opposed to collective bargaining agreements that the company would rather pay off union members than provide them with secure working conditions,” said Simon Petersson, Collective Agreement Secretary at IF Metall. “This is unprecedented in the Swedish labour market—just as Tesla’s systematic actions against strikebreakers are. They have employed methods that have been banned in Sweden since the 1930s,” Petersson added.

Tesla has also clashed with trade unions in Germany, particularly IG Metall. The union is currently challenging the results of the works council election held at Tesla’s Grünheide factory in February, alleging attempts to intimidate candidates and unequal treatment of candidates and electoral lists.

The works council election at Tesla’s Gigafactory near Berlin had already caused controversy before the vote. In a video interview with plant manager André Thierig, Tesla CEO Elon Musk linked further expansion of the German EV factory to the outcome of the election. Musk referred to “external organisations pushing Tesla in the wrong direction”, apparently referring to IG Metall.

, where an external IG Metall representative allegedly made audio recordings on his laptop, Tesla plant manager André Thierig and IG Metall Berlin Brandenburg Sachsen publicly exchanged accusations. The parties eventually settled the dispute through a court-approved agreement at the Frankfurt (Oder) Labour Court.

In Sweden, IF Metall considers the nearly three-year dispute a success, saying the strike has “brought the value of collective bargaining agreements into focus, both nationally and internationally.”

The union will continue to push for collective agreements wherever employers resist them, said IF Metall President Marie Nilsson. “Our members at Tesla are true union heroes. They dared to fight for a collective agreement against an employer that is consistently hostile towards unions. Striking for almost three years requires immense personal sacrifice. The strength of our members at Tesla cannot be overstated.”

ifmetall.se (in Swedish), teslarati.com