Tesla hiring Nordic policy expert as ‘WWE-like standoff’ with unions intensifies

Tesla Nordic public policy experts are being hired as the U.S. electric car giant’s bitter dispute with unions in the region shows no sign of a resolution.

The company and members of Swedish union IF Metall are in a deadlock over Tesla’s refusal to sign a collective bargaining agreement, a key principle of Sweden’s industrial relations framework.

Although the dispute began among 130 mechanics at 10 Tesla repair shops in several Swedish cities, workers from multiple unions in Sweden and elsewhere have launched a solidarity strike.

Unions in several industries in Denmark, Finland and Norway have announced their own measures in recent weeks to force Tesla to grant collective bargaining rights to its Swedish employees.

Some pension funds also sold off their Tesla stock holdings as Tesla refused to reach an agreement with the union.

According to job postings on Tesla’s websiteThe company is currently looking for a “Nordic public policy and business development manager based in Stockholm or Oslo” whose role will be to ensure that the Nordic “political, regulatory and fiscal framework” “supports Tesla’s mission.” “

Last week, the Swedish transport workers union said it would stop collecting trash at Tesla factories in the country, joining dockers, truck drivers, electricians, cleaners and postal workers.

Industrial relations in Sweden are shaped by a series of agreements struck throughout the 20th century, meaning that almost all pay is governed by collective agreements between companies and unions, without any government intervention.

Other Nordic countries have similar underlying principles, so the majority of the population representing Tesla’s key markets is part of the union.

The workers are not making any demands for wages or working conditions, but are trying to force the company to sign an agreement that is largely considered a prerequisite for doing business in Sweden and the surrounding region.

Tesla Chief Executive Elon Musk, a notoriously anti-union figure, called Swedish postal workers’ efforts to block the delivery of license plates to the company’s vehicles “crazy.” Tesla has not yet responded to CNBC’s request for comment on the issue.

Most of the strikes will take effect in the coming days, but neither Musk nor the unions have shown any signs of backing down.

“bush fire”

Dan Ives, managing director at Wedbush Securities, said “WWE-like standoffs” were increasingly becoming a “Third Rail” issue in Sweden and the wider region.

“While the situation in Scandinavia is a controlled situation that Tesla is dealing with, it is an important lightning rod issue for unions around the world,” Ives said in a report last week.

“The UAW’s battle with Detroit, led by Shawn Fain, resulted in General Motors, FordIf Strantis gives in to union demands, the next battleground could be Tesla. “

After signing a record contract with the Detroit automaker, the United Auto Workers launched an unprecedented campaign in November to organize 13 non-union automakers in the United States, reaching 150,000 workers.

Ives said it was “unlikely” that U.S. unions would have much success in going after Musk and Tesla in isolation. However, he said that if the company succumbs to the rise of Scandinavian unions, it could spark “a growing bushfire that eventually spreads to the UAW and the United States in 2024.”

Will Tesla collapse?

This unique impasse, pitting the world’s richest man and the unstoppable force of American corporate power against the seemingly unshakable aims of Scandinavian organized labor principles, means the outcome remains deeply uncertain.

George Kochanowski, a global supply chain expert and CEO of U.S. container shipping company Staxxon, said there are only two possible outcomes – either Tesla collapses or Scandinavian union unity falls apart and was forced to give in.

“I think (Musk) is going to have to cave in over time, but he’s not going to do that now. I think that’s going to happen over time unless energy costs in Europe continue to rise,” he told CNBC on Monday .

“If garbage workers don’t take out garbage from repair shops and dealers etc. this could spread, but is there an ethical issue here? Where does the dock worker have the right to pick one thing to unload and load over another? It’s difficult.”

This suggests other global automakers will be watching the situation closely, although many do manage to operate smoothly in the region.

“The push for corporate America isn’t as heavy as it used to be, and if you have a guy like Jack Welch General ElectricYeah, that will never happen,” Kochanowski said.

Kochanowski also noted that Tesla’s limited product range for the Scandinavian public means it may not have the same bargaining power as a traditional conglomerate.

“Corporate America, when you have a General Electric company that makes everything from plastics to light bulbs, they understand the impact. Elon makes rocket ships, satellites that you and I can’t see or touch, and There are several cars,” he added.

“The impact[of a broad solidarity strike against a company]is very significant because if[the union]goes and licks a lollipop and likes it, they might think ‘Maybe I don’t want to import this or that.'”