The woman spearheading the resistance against Tesla Inc‘s TSLA business practices in Sweden, amidst an intensifying strike involving mechanics, postal workers, dockers, and cleaners, warns that the electric vehicle giant’s approach could disrupt the traditional labor landscape. However, she remains unfazed about the strike falling through, and for a good reason.
What Happened: Marie Nilsson, the head of the IF Metall union in Sweden, emphasized the significance of the Swedish Model, a cornerstone of the country’s prosperity, in an interview with the Financial Times.
The model, established in 1938, enables collaborative decision-making between employers and unions on labor market matters, including wages, as opposed to government dictation.
The Swedish Model: In Sweden, approximately 90% of the workforce operates under collective agreements that govern various employment conditions, such as wages, employment types, occupational pensions, working hours, vacations, and notice periods.
"If Tesla demonstrates the feasibility of operating in Sweden without a collective agreement, it might tempt other companies to follow suit. We have a successful model in Sweden. We have tried to explain it. It's very seldom this type of conflict arises," Nilsson told FT.
She underscored that the absence of a collective agreement could pose a long-term threat to the Swedish model.
IF Metall Not Worried? As the strike enters its second month, Nilsson assured FT that the union has ample funds to sustain the strike for “a long, long time,” as the emergency fund used for payments is rarely tapped.
Tesla contends that, despite the strike, over 90% of its employees continue to hold their positions, asserting that its terms are as good as or better than the union’s demands.
While Tesla doesn’t manufacture in Sweden, its Model Y is the best-selling car model in the country.
The company did not immediately respond to Benzinga‘s request for comment.
Why It Matters: In late October, IF Metall initiated a strike over collective bargaining agreements. Since then, other unions have joined the movement, with dockworkers, cleaning staff, electricians, and even postal workers all participating.
When it eventually threatened the delivery of new vehicles, CEO Elon Musk called it “insane.”
When the United Auto Workers started a simultaneous strike against the Detroit three in the U.S. in mid-September, Tesla was spared as it is not represented by a union.
Musk has been staunchly critical of unions and also vocal about it at the same time. "UAW slogan – "Fighting for the right to embezzle money from auto workers!," Musk wrote on X last year.
When the strike commenced, Musk even claimed that the company pays more than the UAW, though with higher performance expectations.
Read Next: No More Free FSD For Tesla Owners Looking To Buy New Model Y, 3 — But Here’s What They Get Instead
Image created using photos on Shutterstock and courtesy of IF Metall.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
