Tesla ends Sweden's longest strike by buying out remaining striking workers

Published Aug 15, 10:46 PM UTC

Tesla has effectively ended the longest labor conflict in modern Swedish history by offering severance packages to all remaining striking members of the IF Metall union, leaving the union with no members to represent. The strike, which began on October 27, 2023, lasted 1,021 days and involved about 130 Tesla mechanics demanding a collective agreement. Tesla refused to sign such an agreement, instead absorbing sympathy actions across the Nordics, including port blockades and postal service disruptions. The company's decision to buy out workers rather than concede to union demands is seen as a strategic move to avoid setting a precedent that could be used by organizers elsewhere in Europe. The financial cost of the buyouts is undisclosed but considered small relative to Tesla's $28.2 billion quarterly revenue. The article notes that Tesla's profitability has thinned, with operating margins collapsing to 1.4%, making the avoidance of structurally higher labor costs more financially significant.