Contesting Musk: Swedish Tesla strike becomes a global conflict

What began as a local strike by 130 mechanics for a collective labour agreement (CLA) in the Swedish Tesla service workshops is escalating into a global conflict, argues Roland Erne in this guest post. According to the Swedish arbitrator for labour disputes, Tesla boss Elon Musk forbade his local managers to make any concessions to the trade unions, even though CLAs have been a central component in Swedish labour relations for decades. Clearly, Elon Musk feels infinitely powerful and thinks he can bring even Europe's strongest labour unions to their knees. 

LO Sweden: Can an Old Model be Renewed?

LO Sweden is starting a high-level commission on a “new Swedish model”. Long ago, Sweden was known for what was called the Rehn-Meidner model. The idea was that union wage strategies and government policy should be combined to promote full employment and fair distribution while respecting the autonomy of unions and employers. The basic element was a “solidaristic” wage policy which would raise the income level of low-income groups and simultaneously speed up structural change and thereby create more jobs in the future. Unemployment benefits and active labour market programmes would give workers security in the process of change; a “security of the wings”, as Gösta Rehn, LO economist at the time, phrased it. In this guest post, Ingemar Lindberg discusses the huge task of this new commission: How to re-establish a strategy for these goals in our times?

What future for Social Democracy?

On 9 September 2013, a red-green alliance led by the social democratic Labour Party lost the Norwegian general elections. Only two weeks later, the German Social Democrats (SPD) only came a poor second with just over 25 per cent of the votes in their country’s general elections. Even if it ends up as thefor junior partner in a grand coalition, the clear winner was the centre-right Christian Democratic Party of Chancellor Angela Merkel, which missed only narrowly an absolute majority in parliament. In this post, I will assess the general situation of social democratic parties in industrialised countries and speculate about their potential future role.  

Globalisation and the erosion of the Nordic model

In 2007 the Finnish employers’ confederation withdrew from the comprehensive tripartite, multi-sector bargaining system, a step which had been taken by the Swedish employers’ federation 17 years earlier. In Sweden, it signalled to some extent the demise of the so-called Swedish model. In Finland, by contrast, Finnish employers organised in EK and here especially the Federation of Finnish Technology Industries, which represents Finnish export companies, did not succeed in enforcing company level bargaining and, thus, more flexibility in wage structures. Instead, a sectoral collective bargaining system, giving sectoral trade unions significant power, was established. How can we understand this failure in comparison to the more successful attack of the Swedish employers in the 1990s? In this blog post, I will argue that the far lower degree of transnationalization of production in Finland explains to some extent why the attack on the established class compromise happened much later than in Sweden and has been less successful. Nevertheless, I will also conclude that trade unions must remain vigilant in their protection of the welfare state as further attacks are likely.