Nordic strike raising the stakes for Tesla

Weeks after mechanics working for Tesla in Sweden walked off their jobs in late October, members of other unions across the country and in Denmark and Norway have joined the mechanics in sympathy by refusing to provide services to Tesla to pressure the automaker to sign a collective agreement with its Swedish workers.

The strike in Sweden, by 120 mechanics represented by the trade union IF Metall, was the first labor action against Tesla, the U.S. maker of electric vehicles founded 20 years ago and run by Elon Musk.

The strike has spread beyond Sweden after dockworkers in Denmark said they would stop unloading Tesla vehicles at ports around the country.

Tesla does not make cars in Sweden, and the country is a relatively small market for the automaker. Not all of the mechanics at its seven service centers are taking part in the strike.

But the widening support from unions including dockworkers, electrical and postal workers has pressured the automaker to take legal action. Temporary rulings have been made in two court cases, but the final decisions are still pending.

Unions say Tesla is flouting Sweden’s tradition of collective agreements. About 90% of Swedish workers are covered by these agreements, which apply to nonunion employees and set work conditions across industries. They have a long history in Nordic countries and are widely seen as crucial to maintaining social cohesion and a high standard of living.

But Tesla’s Model Y is a hugely popular SUV in Sweden, topping the list of electric cars sold this year. Some industry officials in Sweden are becoming worried that a protracted labor battle could harm business at repair shops forced to stop servicing Tesla vehicles.

Tesla, which starting selling cars in Sweden in 2013, has insisted that it follows Swedish labor laws but has chosen not to sign a collective agreement. The company did not respond to repeated requests for comment.

Strikes are rare in Sweden. Often the threat of a walkout is enough for negotiations to begin.

IF Metall said it had tried for years to bring Tesla to the negotiating table. The union has said it is prepared for a protracted fight but would end the action if Tesla agreed to discuss a collective agreement.