At the end of last month, IF Metal, the worker union representing Tesla's Swedish mechanics, announced a strike to force Tesla to participate in collective bargaining in the labor market. But the strike gradually evolved into a collective "encirclement" of workers from various industries in Sweden against Tesla.
As of last week, 9 local unions have participated in the lockdown on Tesla, including dock workers, cleaners, postal workers, and so on. Last Friday, another key supplier sympathetic to workers announced a temporary shutdown in support of IF Metal's demand to form a union.
Starting from last Friday, approximately 50 employees of Hydro Extrusions, a subsidiary of Norwegian aluminum and energy company Hydro, have stopped working and are either staying at home or supporting other businesses. These people were originally specialized in producing parts for Tesla.
IF Metal negotiation secretary Veli Pekka Saikkala stated that the suspension of Hydro Extrusions, which supplies components to Tesla's Berlin factory, may disrupt Tesla's production in Europe and force them to come to the negotiation table.
He also added that Hydro Extrusions is the only component supplier in Europe, producing aluminum profiles for safety purposes. Saikkala warns that if Tesla refuses to sign, the union is prepared to escalate the conflict.
Uncontrollable European and American markets
IF Metall stated that in Sweden, it is crucial for all companies to sign collective agreements for the labor market, as Sweden does not set minimum wage standards or arrange work time limits, only employment protection frameworks. The key force in regulating the labor market is collective bargaining agreements.
Torbjorn Johansson, who participated in the negotiations, pointed out that about 90% of Swedish employees comply with collective bargaining agreements, which stipulate wages, leave, overtime pay, and other terms. If the union were to open up one side to Tesla, the entire Swedish labor market would be torn open, which would be devastating.
But at the same time, if Tesla agrees to the request of the Swedish union, it will also be torn open. With the continuous rise of the automotive worker movement, Tesla is facing significant union pressure in both the United States and Germany, forcing it to allow unions to be established in factories.
For Tesla CEO Musk, establishing a union means handing over the initiative, and Tesla will continue to be plagued by labor cost issues. Musk himself has always been tough on this, refusing the union.
At present, Tesla has not shown any signs of yielding, and local small business owners in Sweden have already felt the pain. Bjrn Larsson, who works on Tesla repair services, said that the union movement will affect 70% of his business, and if he no longer accepts Tesla related services, it may not be long before layoffs are needed.
He believes that the power of unions has become pathological, and this strike is stifling Swedish businesses.
At the same time, Tesla is actively seeking new factory sites in the Asian region. According to Thai Prime Minister Seth Thaksin's latest statement, Tesla has expressed interest in establishing a new factory in Thailand and investing at least $5 billion. It is reported that Tesla senior management will visit Thailand this week to discuss the location of the new factory.