Swedish union halts strike against Tesla after wage deal

Sweden’s largest industrial union, IF Metall, said on Tuesday it had suspended its strike against Tesla after reaching a wage agreement with the electric vehicle maker.

The union, which represents around 130,000 workers across Sweden, had initiated industrial action last month in a dispute over pay and working conditions at Tesla’s facilities in the country. The strike had disrupted production at Tesla’s plants in Gothenburg and Västerås, where components for the company’s vehicles are manufactured.

IF Metall confirmed the agreement in a statement, though it did not disclose the terms of the deal. The suspension of the strike follows days of negotiations between the union and Tesla management. The company had previously warned that prolonged industrial action could lead to significant financial losses and supply chain disruptions.

Tesla’s operations in Sweden are part of its broader European manufacturing footprint, which includes plants in Germany and the Netherlands. The company has faced labor disputes in multiple markets in recent years, including in the United States and Germany, where unions have pushed for better wages and working conditions.

The resolution of the dispute in Sweden removes a potential near-term risk to Tesla’s production and supply chain in Europe. The company had already warned investors in its recent earnings report that labor unrest could impact its operational efficiency and profitability.

IF Metall’s decision to halt the strike is subject to ratification by its members, though the union expressed confidence that the agreement would be approved. The union did not provide a timeline for when the vote would take place.