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The striking Swedish workers taking on carmaker Tesla

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The striking Swedish workers taking on carmaker Tesla


Tim ManselBusiness reporter, Malmö, Sweden

BBC Tesla mechanic Janis Kuzma standing on the picket line outside a Tesla garage in Malmö. His sign says "Strike at Tesla"
BBC

The strike is about the right of the main union to negotiate pay and conditions for all its members

In Sweden 70 car mechanics are continuing to take on one of the world’s richest companies – Tesla. The strike at the US carmaker’s 10 Swedish service centres has now reached its second anniversary, and there is little prospect of a resolution.

Janis Kuzma has been on the Tesla picket line since October 2023.

“It’s a tough time,” says the 39-year-old. And as Sweden’s cold winter weather sets in, it’s likely to become tougher.

Janis spends each Monday with a colleague, standing outside a Tesla garage on an industrial park in Malmö. His union, IF Metall, provides accommodation in the form of a mobile builders’ van, as well as coffee and sandwiches.

But it’s business as usual across the road, where the workshop appears to be in full swing.

The strike concerns an issue that goes to the heart of Swedish industrial culture – the right of trade unions to negotiate pay and conditions on behalf of their members. This concept of collective agreement has underpinned industrial relations in Sweden for nearly a century.

Striking Tesla mechanic Janis Kuzma standing on the picket line outside a Tesla garage in Malmö

Janis Kuzma says that the ongoing strike has not been easy

Today some 70% of Swedish workers are members of a trade union, and 90% are covered by a collective agreement. Strikes in Sweden are rare.

It’s an arrangement welcomed across the board. “We prefer the right to negotiate freely with the unions and sign collective agreements,” says Mattias Dahl of the Confederation of Swedish Enterprise business organisation.

But Tesla has upset the apple cart. Outspoken chief executive Elon Musk has said he “disagrees” with the idea of unions. “I just don’t like anything which creates a kind of lords and peasants sort of thing,” he told an audience in New York in 2023. “I think the unions try to create negativity in a company.”

Tesla came to Sweden back in 2014, and IF Metall has long wanted to secure a collective agreement with the company.

“But they wouldn’t respond,” says Marie Nilsson, the union’s president. “And we got the impression that they tried to hide away or not discuss this with us.”

She says the union eventually saw no other option than to announce a strike, which started on 27 October, 2023. “Usually it’s enough to make the threat,” says Ms Nilsson. “The company usually signs the agreement.”

But not in this case.

Marie Nilsson, president of Swedish union IF Metall

Union boss Marie Nilsson says that the industrial action was the last option

Janis Kuzma, who is originally from Latvia, started working for Tesla in 2021. He claims that pay and conditions were often dependent on the whim of managers.

He recalls a performance review at which he says he was refused an annual pay rise because he was “not reaching Tesla’s goals”. Meanwhile, a colleague was said to have been turned down for a pay rise because he had the “wrong attitude”.

However, not everyone went out on strike. Tesla had some 130 mechanics working at the time the industrial action was called. IF Metall says that today around 70 of its members are on strike.

Tesla has long since replaced these with new workers, for which there is no precedent since the 1930s.

“Tesla has done it [found replacement staff] openly and systematically,” says German Bender, a researcher at Arena Idé, a think tank financed by Swedish trade unions.

“It’s not illegal, which is important to understand. But it goes against all established norms. But Tesla doesn’t care about norms.

“They want to be norm breakers. So if somebody tells them, hey, you are breaking a norm, they see that as a compliment.”

The BBC asked to speak to Tesla’s subsidiary, TM Sweden, but the request was declined in an email citing “all-time high deliveries”.

Indeed, the company has given only one media interview in the two years since the strike began.

In March 2024, TM Sweden’s “country lead”, Jens Stark, told the business paper Dagens Industri that it suited the company better not to have a collective agreement, and instead “to work closely with the team and give them the best possible conditions”.

Mr Stark denied that the decision not to enter a collective agreement was one made at Tesla headquarter in the US. “We have a mandate to make our own such decisions,” he said.

IF Metall is not entirely alone in its fight. The strike has been supported by a number of other unions.

Dockworkers in neighbouring Denmark, Norway and Finland, are refusing to handle Teslas; rubbish is no longer collected from Tesla’s Swedish facilities; and newly built charging stations are not being connected to the grid in the country.

There is one such facility near Stockholm Arlanda Airport, where 20 chargers stand idle. But Tibor Blomhäll, the president of enthusiasts group Tesla Club Sweden, says Tesla owners are unaffected by the strike.

“There’s another charging station 10km (six miles) from here,” he says. “And we can still buy our cars, we can service our cars, we can charge our cars.”

AFP via Getty Images A Tesla car being charged in SwedenAFP via Getty Images

Despite the strike Tesla’s cars remain popular in Sweden

With stakes high on both sides, it’s hard to see an end to the stand-off. IF Metall risks setting a precedent if it concedes the principle of collective agreement.

“The concern is that that would spread,” says Mr Bender, “and eventually erode the strong support for the labour market model that we have among employers as well”.

Tesla, on the other hand, may feel that conceding this fight in Sweden would strengthen the hand of those who want to unionise Tesla at its production facilities in the US and Germany, where it employs tens of thousands of staff.

Mr Bender detects another reason for the position Tesla has taken. “I think it’s important to understand that Elon Musk doesn’t want to be sort of told how to do things,” he says.

“And I think he doesn’t view the industrial action that the union has taken as an invitation to negotiate, but rather as an ultimatum to sign a dotted line that he doesn’t want to sign.”

Mr Blomhäll of Tesla Club Sweden also says he sees no quick solution. “This will be another Korean War,” he says. “A conflict that just drags on.”

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Petrofac files for administration putting 2,000 jobs at risk

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Petrofac files for administration putting 2,000 jobs at risk



Oil and gas services firm Petrofac has filed for administration, putting around 2,000 Scottish jobs at risk.

The company is tumbling into insolvency after recent restructuring plans collapsed in the wake of a failed renewables contract in the Netherlands.

On Monday, Petrofac told investors that it has applied to the High Court to appoint administrators.

The firm employs more than 7,000 workers globally.

This includes around 2,000 employees from its UK base in Aberdeen, with around 1,200 of these offshore and a further 800 onshore in training and operational roles.

Petrofac said it will now enter insolvency after Dutch electricity grid TenneT terminated a major contract to build windfarms.

The company stressed that the administration will affect the group’s main holding company.

It will continue to trade and assess options for an alternative restructuring, with different merger and acquisition options also being explored with its key creditors.

Advisers at corporate finance firm Teneo are expected to advise over the administration.

“When appointed, administrators will work alongside executive management to preserve value, operational capability and ongoing delivery across the group’s operating and trading entities,” the company said.

Petrofac’s UK business is based in Aberdeen and is involved in the operation of North Sea oil platforms for firms including BP and Shell.

It also has smaller offices in London, Woking and Great Yarmouth.

The Department for Energy Security and Net Zero (DESNZ) has stressed the Government will work with Petrofac after the oil and gas services group filed for administration.

A DESNZ spokeswoman said: “The UK arm of Petrofac has not entered administration and is continuing to operate as normal, as an in-demand business with a highly-skilled workforce and many successful contracts.

“Petrofac’s administration is a product of longstanding issues in their global business.

“The Government will continue to work with the UK company as it focuses on its long-term future.

“Ministers are working across all parts of government led by DESNZ in support of this.”

The company was worth around £6 billion at its peak in 2012 but has slumped in recent years.

It was worth around £20 million when its shares were suspended in May after being severely impacted by an investigation by the Serious Fraud Office and volatile energy prices.



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‘Flawed’ HMRC system stops hundreds of NI families’ child benefit

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‘Flawed’ HMRC system stops hundreds of NI families’ child benefit


PA Media Dáire Hughes speaking at a microphone. He has dark hair and is wearing glasses. He has a navy suit and black tie.PA Media

Sinn Féin MP Dáire Hughes, who is representing 14 of the families affected, called the system “flawed”

Hundreds of families have had their child benefit payments stopped because they returned to Northern Ireland via Dublin airport.

It follows the introduction of a new government anti-fraud system designed to track those who leave the country but do not come back after eight weeks, raising a red flag at HMRC for possible emigration.

Sinn Féin MP Dáire Hughes, who is representing 14 of the families affected, called the system “flawed”.

As first reported in The Detail, HMRC have apologised for the mistake and said they were “working at pace” to reinstate claims so families are “not left out of pocket”.

PA Media Three Bank of England bank notes. One is a blue five pound note with King Charles III on it, in the middle is an orange ten pound note with King Charles III on it and lastly is a purple twenty pound note with King Charles III on it.PA Media

HMRC have said they have reinstated 134 payments

The government crackdown on alleged benefit fraud compares HMRC records with Home Office international travel data.

That means families returning to Northern Ireland through Dublin Airport were mistakenly flagged as having gone abroad and were therefore fraudulently claiming benefits.

In one instance a person flew out from Belfast and back through Dublin, while in another a family had travelled to England and back again via Dublin because it was cheaper.

UK and Irish citizens can travel freely into each other’s countries under the Common Travel Area arrangement (CTA).

There are no routine passport checks when travelling through the border between Northern Ireland and the Republic of Ireland, meaning the UK government has no data to show that someone may have returned to Northern Ireland.

HMRC said it would be introducing an “upfront check” to identify Northern Ireland customers whose exit from the UK was to the Republic of Ireland and will not suspend their payments without first clarifying their residency.

‘Simply appalling’

Hughes, who is the MP for Newry and Armagh, told BBC Radio Ulster’s Good Morning Ulster programme that the policy was being “created in a context of being completely oblivious to the realities of life on this island”.

He said that people from Northern Ireland use Dublin Airport for a variety of reasons and it is “just as handy” to them as either airport in Belfast.

“It is quite patently a ridiculous set up, where months and months, in some cases years after returning to the north, a letter arrives at peoples doors informing them that their child benefits have been suspended and in order to get them reinstated there are extensive hoops to jump through,” he added.

“It’s simply appalling.”

He said he has received a “number of confirmations that payments have been reinstated” to some of the families he represents.

Hughes welcomed the news and added that HMRC had to ensure it did not happen again.

‘Protect taxpayers’ money’ – HMRC

HMRC said it had involved a “small number of customers in Northern Ireland”.

As of 17 October 2025, HMRC said they had had sent enquiry letters to 346 customers from Northern Ireland. This is out of 219,255 customers claiming child benefit in Northern Ireland.

HMRC also said they have reinstated payments and closed enquires to 134 people after carrying out employment checks.

There are 46 cases which are currently undergoing these checks and HMRC confirmed they will reinstate payments once they are complete.

Child benefit is paid to more 6.9 million families, supporting 11.9 million children. It is one of the most widely accessed forms of benefit in the UK.

HMRC said a successful pilot scheme focusing on those who left the UK but carried on claiming, had already prevented £17m in wrongful payments by removing them from the system.

“It’s crucial that we undertake this work to protect taxpayers’ money,” HMRC added.



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North Sea oil and gas firm Petrofac files for administration

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North Sea oil and gas firm Petrofac files for administration


Energy services firm Petrofac has filed for administration.

The company, which employs about 2,000 people in Scotland, said its North Sea business would continue to operate as normal.

In a statement, Petrofac said it had applied to appoint administrators for its holding company, but that alternative restructuring options were being explored.

It added that administrators would work to “preserve value, operational capability and ongoing delivery”.

The decision comes after Dutch grid operator TenneT terminated a major offshore wind contract with Petrofac, scuppering a planned financial restructuring.

The firm, which has UK offices in Aberdeen, London, Woking and Great Yarmouth, said further information on the administration process would be provided in due course.

Founded in Texas in 1981, Petrofac designs and builds facilities for oil, gas and renewables projects, as well as providing engineering, project management and logistical services.

It has been involved in the operation of North Sea oil platforms for firms including BP and Shell.

Once a FTSE 100 firm, the company was worth around £6bn at its peak in 2012 but it has slumped in recent years following a Serious Fraud Office investigation and a series of profit warnings.

Petrofac was worth around £20m when its shares were suspended in May. The firm has cited delays in contract payments and rising operating costs.

A spokesperson for the UK Department of Energy Security and Net Zero said: “The UK arm of Petrofac has not entered administration and is continuing to operate as normal, as an in-demand business with a highly skilled workforce and many successful contracts.”

They said the administration process was a result of “long-standing issues” in the firm’s worldwide operations.

The spokesperson added: “The government will continue to work with the UK company as it focuses on its long-term future.”



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