Swedish union files lawsuit against Tesla over labour conflict

By Isabelle Yr Carlsson

STOCKHOLM (Reuters) – Swedish trade union IF Metall has filed a lawsuit against Tesla (NASDAQ:TSLA) alleging the company failed to inform employee representatives of workplace changes, which is mandatory under the country’s labour laws, union officials said on Thursday.

It was IF Metall’s second lawsuit this year alleging that the U.S. electric vehicle maker was in breach of Sweden’s Co-Determination Act that stipulates companies must inform labour unions of major changes.

The first case has yet to be decided by the courts.

The U.S. group headed by billionaire Elon Musk is at the centre of a year-long dispute in Sweden over its refusal to sign a collective bargaining agreement and thus allow IF Metall to negotiate wages and other conditions on behalf of workers.

Tesla did not immediately respond to request for comment.

The car maker has said it offers as good, or better, terms than those demanded by the union, and has found ways to stay in operation and boost its Swedish market share, including by employing non-union staff.

IF Metall in its latest lawsuit said Tesla had reorganised its branch in the Swedish city of Umea without informing the union, according to court documents filed on Wednesday and obtained by Reuters through a freedom of information request.

According to IF Metall, Tesla phased out its entire sales organisation in Umea without informing the union and also outsourced other parts.

The conflict started in October 2023 when a group of Tesla mechanics went on strike, followed by more than a dozen unions that announced action in sympathy, including dockworkers, electricians, maintenance crews and cleaners.

Tesla’s service centre in Umea has had one of the highest numbers of striking workers, according to union officials, but sales staff did not take part.