The ongoing conflict between Swedish unions and Tesla intensified on Friday as Hydro Extrusions, a key supplier of specialised components for Tesla, joined a sympathy action to press the electric car manufacturer into signing a collective bargaining agreement for its Swedish workforce.
Approximately 50 workers at Hydro Extrusions, a subsidiary of Norwegian aluminium and energy company Hydro, responsible for crafting crucial components for Tesla, will either be on temporary leave or assigned alternative tasks until further notice, according to the IF Metall union.
These components are destined for Tesla’s factory in Berlin, and the union hopes that disrupting the supply chain will compel Tesla to return to negotiations. Veli-Pekka Saikkala, the negotiation secretary for IF Metall, emphasised that Hydro Extrusions is the sole European supplier of these components.
IF Metall, Sweden’s largest manufacturing union, has been in a standoff with Tesla over securing a collective bargaining agreement for its 130 mechanics in Sweden. Since the initiation of a strike by mechanics on October 27, support has grown, with members of other unions, including postal workers, dockworkers, and cleaners, refusing to collaborate with Tesla or its products.
Saikkala affirmed the union’s readiness to escalate the conflict if Tesla remains unwilling to sign a collective bargaining agreement, emphasising the broader significance of the dispute for the Swedish labour market.
Tesla, adhering to its policy of not signing collective bargaining agreements, did not respond to multiple requests for comment. The company asserts that its employees enjoy terms equal to or better than those demanded by the Swedish union. However, the union argues that collective agreements are vital to the Swedish labour market model.
Torbjorn Johansson, negotiation secretary at LO, the union umbrella organisation, highlighted that in Sweden, where there are no minimum wages or strict labour laws, collective bargaining agreements play a crucial role in regulating employment conditions. He stressed the importance of treating all companies equally under these agreements to maintain a healthy competition landscape.
Approximately 90% of all employees in Sweden are covered by collective bargaining agreements, which set standards for wages, vacation, overtime pay, and other working conditions. Johansson warned that allowing exceptions for companies like Tesla could erode the existing model and have devastating consequences.
The Vetlanda plant of Hydro Extrusions, where aluminium profiles are manufactured, has become the first Tesla supplier in Sweden to halt operations in solidarity with the mechanics’ strike. The unfolding situation underscores the widening ripple effects of the dispute and the potential disruption it may cause to Tesla’s European production chain.