IN THE past few weeks the Morning Star has given coverage to the battle now raging in Sweden between Elon Musk, the CEO of e-vehicle manufacturer Tesla, and the Swedish trade union IF Metall.

The dispute arose when Musk told his management in Sweden not to engage in further talks with the union and the Swedish mediation service in regard to union recognition and implementing a sector-wide collective bargaining agreement for 130 Tesla mechanics in the country, as provided by Swedish law to implement the “Swedish model” of industrial relations. 

In Sweden (and Denmark) there are industry-wide agreements between employers’ associations and unions. These cover companies which are members of the employers association. They are normally followed by some form of local negotiations.  

For unorganised employers, like Tesla, an individual collective bargaining agreement is signed. This is often modelled on the industry-wide one. 

In  the case of Tesla, the negotiations were for an individual collective agreement. 

Should Tesla choose to become a member of a Swedish employer’s organisation, it would automatically be covered by the industry-wide agreement.

Industry experts have pointed out that all Musk needs to do is join the employers’ body and his troubles would be over.

But Musk has taken the decision to pull the plug on any further talks. The IF Metall union continued to follow procedures and offered more talks which local management were told by Musk to decline. 

In Sweden and in other Nordic countries unions follow procedures. They do not take strike action lightly or until it is found necessary.

IF Metall eventually gave notice of a strike which Musk immediately described as “insane.” 

Other unions in Sweden started to give employers notice of intention of taking secondary action in support of IF Metall.

Dockworkers have refused to unload imported Teslas cars; postal workers have refused to handle post bound for Tesla, including new car registrations which are in process via a contract with the Swedish postal service; painters refused to handle and repair Teslas and IF Metall members employed at Hydro Extrusion who manufacture parts bound for Tesla’s German factory in Brandenburg refused to handle the work.

Musk appealed to the Swedish courts over what he saw as the Transport Agency’s aqucience in not ensuring new car registrations were processed — and initially won its case, only for the court to reverse its decision a few days later. 

Stockholm Taxi, the largest taxi company in Stockholm which has a collective agreement, has ended the purchase of Tesla e-vehicles.

Transport unions in Denmark and Norway have now given warning that they will stop imports bound for Sweden and most recently the Finnish unions have joined the fight with the Transport Workers Union giving notice they will enforce an embargo against Tesla across the Finnish ports starting next week.

The first major major institutional investor in Tesla, PensionDanmark, has dumped its shares in Tesla in response to the dispute.

The Nordic pension fund Velliv Pension & Livsforsikring A/S, which manages $47 billion, says it is “aware of the challenges associated with Tesla” and expected the company to change its behaviour.

Musk’s reaction has been to tell a New York Times event: “I disagree with the idea of unions. I just don’t like anything which creates a lords and peasants sort of thing. I think the unions naturally try to create negativity in a company.”

Showing his ignorance of how industrial relations work in the Nordic countries and being surprised at actions by members, other unions and those organisations with whom they have relationships, including pension funds, beggars belief. 

His management at Tesla Sweden TM would no doubt have warned him of the facts of life in the Nordic countiries. 

The Nordic model is based on relationship building, not “disruption” which is Musk’s chosen “business model” which it seems he thinks he can transplant from California across the globe.

Across the Nordic countries union density is high and 90 per cent of working adults are covered by sectoral collective agreements.

Nordic unions provide a wide range of support and help to members and although some of the Nordic counties have elected right-wing governments or coalitions, few have decided to take a sledgehammer to the industrial relations and collective bargains framework in the way Musk has done.

I once asked comrades in Sweden and Finland why union density remained high? Their answer was joining a union  was “the sensible thing to do.” 

Sectoral collective bargaining keeps an equilibrium, not just on pay, working time, skills but on training, employment and social protection.

The Nordic unions also work on the basis is sticking together to defend the Nordic employment model.

In recent times I saw their vehemence at first hand when they opposed the idea of a Europe-wide minimum wage which they feared would disrupt their collective bargaining model. 

They were clear — you go ahead if you want — but we won’t. The fear was that it would undercut sectoral collective bargaining across the Nordic unions.

The Swedish unions have also began to organise in the digital and fintech areas.

Talks for a collective agreement with music-sharing platform Spotify were progressing but the company pulled out saying collective bargaining did not fit in with their business model. 

The unions had other priorities, but say they will to return to Spotify especially as Klarna, the “buy now, pay later” digital finance company which initially refused to reach agreement with the unions, changed its mind when the workforce of predominately young people decided to call a strike.

Musk has trouble not just in the Nordic countries: the United Autoworkers in the US has Tesla in its sights for organising and in Germany the giant IG Metall union’s new president Christiane Benner has told Musk “You need to be careful. The rules of the game are different here.”

“It seems it hasn’t dawned on Tesla’s management that proper working conditions create more value and fewer risks in companies,” said Velliv Pension & Livsforsikring A/S CEO Jens Munch Holst.

But Musk is not in listening mode. Instead he has embarked on strike-breaking and trying to import e-vehicles via other European routes and to try to win his case in the Swedish and Danish courts.

But as one seasoned Nordic trade unionist told me: “Musk has deep pockets — but so do the Nordic unions. They are targeting one company, not a whole industry. They also have a reservoir of public support where collective bargaining provides stability and certainty. 

“Musk should forget the courts and find a solution with IF Metall. The public have longstanding green credentials — but people do not take kindly to Musk trying to break the Nordic model.”

Expect a long dispute.