海角大神

Tesla strike: Elon Musk butts heads with Scandinavian worker ideals

Strikes at Tesla鈥檚 Swedish service centers have pitted CEO Elon Musk against the strongly held labor ideals of Nordic countries. None of Tesla鈥檚 workers are unionized, but pressure mounts as sympathy for strikers rises.

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Alessandra Tarantino/AP
Tesla's CEO Elon Musk cheers as he speaks at the annual political festival Atreju, in Rome, Italy, on Dec. 16.

Tesla has found itself locked in an increasingly bitter dispute with union workers in Sweden聽and neighboring countries. The showdown pits the electric car maker鈥檚 CEO Elon Musk, who鈥檚 staunchly anti-union, against the strongly held labor ideals of Scandinavian countries.

None of Tesla鈥檚 workers anywhere in the world are unionized, raising questions about whether strikes could spread聽to other parts of Europe where employees commonly have collective bargaining rights 鈥 notably in Germany, Tesla鈥檚 most important market.

Here are key things to know about the union fight:

How did the Tesla strike gain steam?聽

About 130 mechanics at 10 Tesla garages across Sweden walked off the job on Oct. 27 over the company鈥檚 refusal to sign a collective bargaining agreement. Tesla doesn鈥檛 have a factory in Sweden, but does have a network of service centers.

Since the mechanics with the powerful Swedish metalworkers鈥 union IF Metall went on strike, other workers around the country have joined in sympathy, withholding their services to pressure the company.

Members of the country鈥檚 transport union聽say they鈥檒l stop collecting waste from Tesla service centers starting Dec. 24. Employees with supplier Hydro Extrusions, which makes aluminum profiles, are refusing to make a component for Tesla cars.

Other unions say their members won鈥檛 paint Tesla cars, clean the company鈥檚 offices, or service electrical systems聽at its workshops or any of its 70 charging stations in Sweden.

Postal workers have stopped delivering license plates for new Tesla vehicles, prompting Tesla to sue聽the Swedish Transport Agency, demanding that it be allowed to retrieve the plates, and PostNord, the company that delivers the registration numbers. Tesla lost an early battle in the case, which is still working through the courts.

The boycott has escalated by spreading to neighboring Nordic countries. Like in Sweden, dockworkers in Denmark聽won鈥檛 unload Tesla vehicles arriving at ports. Unions in Finland聽and those in Norway聽have warned that workers at ports and workshops will join the strike if the dispute isn鈥檛 resolved by Dec. 20.

Who else is pressuring Mr. Musk?聽

A group of 16 institutional investors including KLP, Norway鈥檚 biggest pension fund, and PensionDanmark, have written to Tesla board chair Robyn Denholm. They have urged the company to reconsider its approach to unions and asked for a meeting to discuss it further.

PensionDanmark has sold its 476 million kroner ($70 million) stake in the carmaker, saying it鈥檚 putting Tesla on its blacklist 鈥渋n the light of the conflict spreading to Denmark and Tesla鈥檚 latest and very categorical denial to reach collective agreements in any country.鈥

Paedagoernes Pension, Denmark鈥檚 teachers鈥 pension fund, sold its 242 million kroner ($35 million) stake in Tesla because it 鈥渃annot compromise鈥 on its core values, CEO Sune Schackenfeldt said in a statement.聽

The fund discussed workers鈥 rights with Tesla in March, but Mr. Musk鈥檚 鈥渉ard course against the Nordic trade union movement鈥 makes continued investment unsustainable, it said.

Why are unions so important in Nordic countries?聽

Sweden is one of the most highly unionized countries in Europe, with nine in 10 workers covered by collective agreements.

Across Scandinavia, trade unions and employers negotiate deals on wages and working conditions, with almost no involvement from the state. It鈥檚 a system that originated in the 1930s and is widely acknowledged as the backbone of a labor market model that has helped workers benefit from decades of economic prosperity.

The system results in fewer strikes than in other countries like France聽and Germany, because negotiations are the first avenue to resolve disputes.

Tesla鈥檚 attempts to secure a quick win in the license plate clash through Swedish courts 鈥渁ppears to be having precisely the opposite impact, making unions more steadfast and creating sympathetic actions across the country,鈥 said Matthias Schmidt, an independent auto analyst.

Collective agreements allow 鈥渇or companies to operate on a level playing field, while avoiding the risk of any one employer distorting competition in the sector by imposing poor conditions on their employees,鈥 the IF Metall union says.

In a famous example of this model鈥檚 success, the Toys R Us toy chain started up in Sweden in 1995 and hired only nonunion workers. The chain refused to sign such collective agreements. It resulted in a three-month strike by the retail employees union that snowballed into an all-out boycott as other Swedish unions joined in sympathy strikes. The company eventually agreed to sign collective deals.

What has Mr. Musk said?聽

He鈥檚 never hidden his disdain for unions, writing, 鈥渢his is insane,鈥澛爋n his social media platform X, formerly known as Twitter, in response to a tweet about Swedish postal workers refusing to deliver license plates.

In the United States, Mr. Musk has picked online fights聽with the United Auto Workers and vehemently battled union legal challenges to his company鈥檚 actions.

鈥淚 disagree with the idea of unions,鈥 Mr. Musk said in a November onstage interview with The New York Times. 鈥淚 just don鈥檛 like anything which creates kind of a lords and peasants sort of thing.鈥

Mr. Musk, the world鈥檚 wealthiest person, said that unions try to create negativity in a company, denying that Tesla has a wealth hierarchy largely because the company awards everyone stock options.

鈥淓veryone eats at the same table. Everyone parks in the same parking lot,鈥 he said.

Mr. Musk has accused the UAW of driving General Motors and Chrysler into bankruptcy, costing many workers their jobs. He said that if Tesla becomes unionized, 鈥渋t will be because we deserve it and we鈥檝e failed in some way.鈥

Tesla didn鈥檛 respond to a request for comment.

What could happen next?聽

Watching from the sidelines are labor organizers in Germany, where Tesla opened its first European gigafactory in 2022. The plant in Grunheide, southeast of Berlin, employs 11,000 people. It makes both batteries and Model Y SUVs.

Germany is the company鈥檚 biggest market, selling 55,000 vehicles so far this year, three times as many as in Sweden, according to data from Mr. Schmidt.

Labor organizers are on a union drive to sign up Tesla workers and say the numbers are rising quickly.

Workers and unions in Germany are banned from joining sympathy strikes, but that might 鈥渁ct as a catalyst to German Tesla production line workers to join local unions that can strike a good deal for them,鈥 Mr. Schmidt said.

Germany鈥檚 IG Metall union says聽it鈥檚 concerned about occupational safety at the plant and has fielded reports from 鈥渘umerous employees鈥 about accidents and health problems that resulted in high staff sickness rates.

海角大神e Benner, the union鈥檚 newly elected chairwoman, has Tesla in her sights.

鈥淲e don鈥檛 allow union-free zones! Not even on Mars, Elon Musk!鈥 she said in her inaugural speech聽in October.

This story was reported by The Associated Press.聽AP writers Tom Krisher in Detroit and Jan M. Olsen in Copenhagen, Denmark, contributed.

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