Tesla ends Swedish strike by buying out 80 employees

The historic labor dispute between Tesla and the Swedish union IF Metall has concluded without a collective bargaining agreement. Instead of signing a contract, Tesla opted to buy out approximately 80 striking mechanics. These employees were reportedly offered severance packages equivalent to 1.5 years of salary to leave the company permanently, a move estimated to have cost the electric vehicle manufacturer around 67 million Swedish kronor.

With the striking workers removed from the company, the basis for the industrial action dissolved, forcing IF Metall to cease its activities. The conflict, which began in October 2023, saw widespread sympathy strikes and blockades from postal workers, dockworkers, and utility companies. While Tesla successfully avoided a collective agreement in the Swedish market, union representatives described the move as an unprecedented attempt to bypass organized labor by purchasing out unionized staff.

Within the union, there has been internal criticism regarding administrative errors, specifically a tax issue that required members to repay significant sums. However, local union leaders have expressed varying degrees of continued confidence in IF Metall's leadership, with some calling for an investigation into the sequence of events to improve future responses.