Should Tesla Embrace The Swedish IF Metall's "Olive Branch"

Earlier today I made a report about a possible compromise between Tesla and the Swedish powerful union IT Metall, which offered an "olive branch" to Tesla, inspired by how Amazon works in Sweden (via local media outlet Dagens Nyheter).

One of you guys wrote an interesting comment, which I like to present here and respond. 

Michael writes, Armen, I think Tesla should enter into the Union and promptly offer the workers less pay and time off than they were getting before.

Collective bargaining can work both ways and Tesla is one of the most sought-after companies in the world to work for. I worked in a union and experienced pay cuts that were bargained for. Also, flight cabin crews in the US negotiated lower multiple times in the early 2000s, so there are precedents out there.

Well, you know, guys collective bargaining can be a complex process with both benefits and drawbacks for both employers and employees. While it is true that unions can sometimes negotiate for lower wages or benefits, this is typically done in exchange for other concessions from the employer, such as job security or improved working conditions. Ultimately, whether or not collective bargaining is beneficial for a particular group of workers depends on a variety of factors, including the specific industry, the strength of the union, and the bargaining power of the employer.

Whether Tesla embraces this olive branch remains to be seen. But with the strike dragging on and public pressure mounting, the Amazon-inspired compromise presents a viable path towards ending the conflict and restarting production in Sweden. What would you do if you were Tesla?

Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded TorqueNews.com in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebook, Linkedin, and Youtube. He has more than a decade of expertise in the automotive industry with a special interest in Tesla and electric vehicles.