BEERG Newsletter 36 - Sweden: Tesla faces first ever strike

The left-of-centre website, Social Europe, reports that “Tesla faces its first ever strike after refusing to negotiate with the Swedish trade union IF Metall.” From the article it would appear that Tesla has refused to join the relevant employers’ organisation. Had it joined, then it would have automatically been covered by the sectoral collective agreement, avoiding the need for face-to-face negotiations with Metall. 

As Tesla is outside the employers’ organisation, the union if free to demand that it bargain with it for a collective agreement and is also free to use whatever pressure tactics it feels appropriate. The article draws attention to what happened to Toys’R’Us back in 1995 when it entered the Swedish market and refused to deal with the commerce union, Handelsanställdas Förbund.

Tesla is also under pressure from IG Metall in Germany which is building membership in the company’s Berlin factory. (See this from the Financial Times on the union’s new general secretary)

The company has a policy of refusing to recognise unions anywhere it operates. As many another US company has found over the years, such a position is hard to sustain in countries that have a deeply ingrained pro-labour culture and a supportive political environment that crosses left/right divides. 

Simply put, US rules do not travel well. The irony is that had Tesla followed US rules then it would likely have had to recognise Metall through majority employee support. Trade union membership in Sweden is over 70% of the workforce.

Breaking: Just as we were finalising this week’s newsletter, this article came to our attention.  It says that the Tesla workers refused to walk out and that the strike is a failure. We will update you next week as more information becomes available.