Written by Isabel Carlson
STOCKHOLM (Reuters) – Swedish labor union IF Metall has filed a lawsuit against Tesla Inc (NASDAQ:), alleging the company failed to inform employee representatives of changes in the workplace, which is mandatory under the country’s labor laws, union officials said on Thursday.
This was the second lawsuit filed by IF Metall this year, which alleges that the American electric car maker violated Sweden’s joint determination law that stipulates that companies must inform labor unions of major changes.
The courts have not yet decided on the first case.
The American group headed by billionaire Elon Musk is at the center 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 a request for comment.
The automaker said it was offering terms as good, or better, than those demanded by the union, and had found ways to stay in business and boost its Swedish market share, including by hiring non-union staff.
IF Metall said in its latest lawsuit that Tesla reorganized its subsidiary in the Swedish city of Umeå 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 organization in Umeå without informing the union and also outsourced other parts.
The conflict began in October 2023 when a group of Tesla mechanics went on strike, followed by more than a dozen unions announcing sympathy actions, including dock workers, electricians, maintenance crews and janitors.
Tesla’s service center in Umeå has one of the largest numbers of striking workers, according to union officials, but sales employees did not participate.