Swedish trade union Seko warns of action against Tesla

Swedish trade union Seko has warned that its members may stop installing and servicing Tesla’s charging stations in the country in support of another union IF Metall’s conflict with the US carmaker. IF Metall’s employees have been demanding collective agreements from the company and went on a strike in October last year. Tesla has been facing pressure in the Nordic countries from powerful employee unions backing IF Metall.

Supporting IF Metall’s cause

Seko plans to launch the action from March 4 unless the electric vehicle group has agreed to a collective agreement with IF Metall by then. “The fight that IF Metall is now taking is important for the entire Swedish collective agreement model,” Seko president Gabriella Lavecchia said. She added, “That is why we have chosen to issue another sympathy notice and increase the pressure on Tesla.”

Collective agreements in Sweden

IF Metall’s demand for collective agreements forms the basis of Swedish labour market where trade unions and the employers’ organizations determine the rules of the game. Approximately nine out of ten workers in Sweden are covered by collective agreements which define wages, form of employment, occupational pension, working hours, vacations, and periods of notice. By signing these agreements, employers benefit from industry-specific, long-term, and stable ground rules.

Framework for labour relations

The trade unions negotiate the collective agreement on a sector-by-sector basis while employees are guaranteed the wages and working conditions that are standard across the sector. This creates a level playing field for employers, while avoiding the risk of any one employer distorting competition in the sector by imposing poor conditions on their employees.

Historical context

These collective agreements have been grounded on long-standing Swedish tradition of over 100 years of negotiations between the labor market parties. These ensure avoidance of any conflict or industrial action, thus promoting peace among employees and employers. IF Metall is a trade union organizing 300,000 members within the manufacturing and chemical industries, in mining, and in the automotive industry.