Tesla is facing legal action in Sweden from the country’s powerful metal workers’ union, IF Metall. The union announced on Tuesday that it is taking the electric vehicle manufacturer to court for refusing to disclose its financial health.
Tomas With, vice-president of IF Metall, stated that the necessary documents were prepared and would be filed with the court next week at the latest. According to the union, Swedish law requires companies to keep unions informed about their financial situation, even if they have not signed a collective agreement. This legal action stems from a protracted dispute between Tesla and the union over a collective wage agreement.
In late October, IF Metall launched a strike against Tesla, with approximately 130 mechanics at 10 Tesla repair shops in seven cities walking off the job. The strike subsequently expanded, encompassing work on Teslas at other repair shops serving multiple brands. This conflict has grown into a broader struggle between Tesla and numerous unions seeking to safeguard Sweden’s labour model. These unions represent various sectors, including postal workers, dock workers, and have even spread to neighbouring Nordic countries.
Since March, IF Metall has been organizing meetings with Tesla’s Swedish repair shops to gain insight into the company’s financial standing. With noted that while most workshops provided this information, one in Uppsala, north of Stockholm, refused, citing a conflict with IF Metall’s request.
Collective agreements with unions are a cornerstone of the Nordic labour market model. Negotiated on a sector-by-sector basis, these agreements guarantee wages and working conditions, covering almost 90 percent of employees in Sweden and 80 percent in Denmark. While many of Tesla’s employees in Sweden are union members, they cannot benefit from these agreements unless Tesla agrees to them.
Tesla CEO Elon Musk has consistently resisted calls for unionization at the company, both in Sweden and globally, refusing to allow its 127,000 employees worldwide to unionize. The ongoing legal battle in Sweden underscores the clash between Tesla’s global approach to labour relations and the established framework of the Nordic labour market model.
