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Tesla service workers in Sweden are on strike, and Tesla commented publicly on the strike for the first time as sympathy strikes expand to shipping, cleaning and electrical workers.

Late last month, Tesla service workers in Sweden threatened to strike over the lack of a collective bargaining agreement covering their working conditions. After getting no response from Tesla, the strike began almost two weeks ago.

Tesla does not have any manufacturing presence in Sweden, but since EVs are very popular in Sweden with about a 60% share of the new car market, there are certainly plenty of Teslas that need to be serviced.

But those Tesla service workers are not covered by a collective bargaining agreement, unlike 90% of Swedish employees. And IF Metall, a major union covering hundreds of thousands of industrial workers across Sweden, says that’s a problem. So it is leading a strike against the company.

The strike is relatively small, covering about 130 workers in 7 locations. Not everyone who works at these locations is unionized, and because of European data privacy rules, neither the union nor the workers need to specify exactly which workers are part of the union.

While 130 workers may sound like a small amount across a whole country, Sweden saw a similarly-small strike when Toys ‘R’ Us entered Sweden and refused to sign a collective bargaining agreement. About 80 retail workers decided to strike, and that strike spread to many other industries until Toys ‘R’ Us was forced to relent, making Sweden the only territory in the world where the company signed a collective bargaining agreement.

Because of near-universal collective bargaining coverage and a history of worker victories, strikes are relatively rare in Sweden. Companies know that it’s better just to come to the table rather than to let negotiations reach strike conditions.

So Sweden has a strong history with enforcing “the Swedish model” of labor, how is it going with Tesla, just a couple weeks in?

Is work stopped, or not?

The question of how effective the strike has been so far is still an open one. On the one hand, on the day the strike began, Tesla Club Sweden suggested that nobody showed up after visiting a single service center near Stockholm and talking to some of the employees there.

On the other hand, Dagens Arbete, a Swedish labor newspaper, reported on several locations and said that some of them have seen significant strike action and some have not. For example, nobody is on strike in Norrköping but almost everyone is in Umeå. And picketers were confronted by “an English-speaking man” in Malmö, who said he would call the police if they stepped out of line. And IF Metall says there has been “strong support” for the strike from workers.

Tesla committed to hiring strikebreakers, also known as “scabs,” and there have been reports of unidentified mechanics showing up in taxis in certain locations, which could suggest new hires, or that Tesla is shuffling remaining employees from one location to another. IF Metall says that hiring strikebreakers “would be crossing all boundaries. That kind of thing happened in Sweden in the 1920s and 30s.”

Tesla responds, negotiations begin

IF Metall sat down with Tesla on November 1 and November 6 for discussions. IF Metall says the November 1 meeting was constructive, but Monday’s discussion yielded nothing according to Vali-Pekka Säikkälä from IF Metall. He said “We are clear, there will be no agreement.”

After the second meeting, Tesla issued a public statement on the strike for the first time – a rare event for Tesla, which generally does not make public comments given that it does not have a PR/communications department (though it is more common for Tesla to make comment in other countries).

In TT, the Swedish national wire service, a Tesla representative was quoted thusly:

It is unfortunate that IF Metall has taken these measures. Tesla follows Swedish labor market regulations, but like many other companies has chosen not to enter into a collective agreement. We already offer equivalent or better agreements than those covered by collective bargaining and find no reason to sign any other agreement

But strikers say the issue is less about benefits such as pay, and more about working conditions and stability. Some Tesla employees say that timelines are far too strict for repairs, leading Tesla to send out damaged cars and rewarding employees who do incomplete work, while punishing those who take the time to completely solve a problem.

Strike expands to dockworkers, cleaners, third-party shops

Today, the strike expanded to dockworkers. The Swedish Dockworkers union said that if the strike was not resolved by November 7th, it would stop unloading vehicles in four Swedish ports, and the deadline for that began today. So Tesla will no longer be able to ship to Malmö, Södertälje, Gothenburg and Trelleborg.

But it was reported this week by SVT that Tesla is said to have rearranged its car transports around the affected ports. Typically one ship a week enters the port at Södertälje, for example, but there are no transports expected from the car brand according to the CEO of the port.

And so the dockworkers union has decided to expand its work stoppage across all ports, rather than just the four previously listed. Dockworkers will continue to unload docks across the country, but will not unload Tesla cars, starting November 17th.

In addition, Fastighets, the Swedish building maintenance workers’ union, said it will join the strike at Tesla facilities in Huddinge, Segeltorp, Umeå and Upplands Väsby on the same date, November 17th. This means that these facilities will not be cleaned by union workers starting on that date.

When Tesla consistently refuses to sign a collective agreement, it poses a threat to the stability of the Swedish labor market. Everyone who works in Sweden must be covered by Swedish wages and Swedish conditions

Joakim Oscarsson, Fastighets, in a comment to SVT

The strike has expanded to third-party repair shops as well, with 17 additional shops across the country refusing to work on Tesla vehicles. SVT attempted to interview one of these shops in Gothenburg, which responded “we have decided not to participate in media contexts during this conflict and during ongoing negotiations as we are not a party to the primary conflict.”

And Elektrikerna, the Swedish electricians’ union, will also refuse to do electrical work at Tesla’s workshops and charging stations, starting November 15. Other unions that are part of LO, Sweden’s Trade Union Confederation, may join as time goes on.

Electrek’s Take

As is the case in a necessarily oppositional conflict like this, there are a lot of competing voices for what is or is not happening in the strike.

And as I’ve stated before in strike-related articles, personally, I’m pro-union. And I think that everyone should be – it only makes sense that people should have their interests collectively represented, and that people should be able to join together to support each other and exercise their power collectively, instead of individually.

This is precisely what companies do with industry organizations, lobby organizations, chambers of commerce, and so on. And it’s what people do when sorting themselves into local, state, or national governments. So naturally, workers should do the same.

We’ve seen it work in the US, where UAW just recently won big gains with its unprecedented strike against all three of the largest American automakers, and this ended up being a boon for other workers as well when Toyota raised wages immediately after the strike was resolved.

It seems to be a success in Sweden, too, where workers typically have high median wages, high levels of life satisfaction and generally good quality of life and good labor protections. These sorts of protections become the standard when 90% of the country is covered by collective bargaining – they’re so standard that Sweden in fact does not have a national minimum wage, since union power is strong enough to ensure that workers get treated well without the force of law getting involved.

And, in our significant experience with Tesla, it is apparent that it is a company that offers good potential gains for workers, but suffers from high turnover and burnout, and plays fast and loose when relating to government regulations. Employees in one Swedish service center say that isn’t the case, at least according to a Tesla fan forum, so maybe it’s different in Sweden. But here in California, Tesla employees universally acknowledge the high turnover – even the ones that have been with the company for a long time themselves.

So I tend to think that the strikers likely have a point – everything I know about Tesla makes the reports of rushed work and tough conditions completely believable. And while Tesla’s “startup mentality” suggests that a scrappy, hardworking approach is the best way to move forward, maybe a company that is now 20 years old and has well over 100k employees could stand to mature a bit, focus on quality and employee retention (aiding institutional memory, which is lacking at Tesla), and play by the rules in a country that has stopped other anti-union companies dead in their tracks before.

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Exxon CEO says dispute with Chevron over Hess Guyana oil assets could drag into 2025

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Exxon CEO says dispute with Chevron over Hess Guyana oil assets could drag into 2025

Darren Woods, chairman and chief executive officer of Exxon Mobil Corp, speaks during the 2024 CERAWeek by S&P Global conference in Houston, Texas, US, on Monday, March 18, 2024. 

F. Carter Smith | Bloomberg | Getty Images

Exxon CEO Darren Woods said Monday that the dispute with Chevron over Hess Corporation‘s oil assets in Guyana likely will not be resolved until 2025.

“My view is it will go into 2025,” Woods told CNBC’s David Faber at the Milken Institute’s Global Conference in Los Angeles. Hess had previously indicated that the case could drag into next year.

“This is an important arbitration obviously not only for Exxon Mobil but for Chevron and Hess,” Woods said. “What we need to do is take our time to do what’s right to make sure that we do all the due diligence and we get to the answer — the right answer.”

Exxon is claiming a right of first refusal on Hess’ assets in Guyana under a joint operating agreement that governs a consortium that is developing the South American nation’s prolific oil resources. The oil major filed for arbitration in March at the International Chamber of Commerce in Paris.

Woods said the panel of arbitrators is still being selected and then the process will go into discovery. The CEO has repeatedly expressed confidence that Exxon will prevail in the dispute, saying the company wrote the agreement that governs the consortium.

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Chevron has rejected Exxon’s claims that the agreement applies to its pending all-stock deal to acquire Hess, valued at $53 billion.

The arbitration court will ultimately decide the timeline of the proceedings, but Hess has asked the panel to hear the merits of the case in the third quarter with an outcome in the following quarter. Chevron CEO Mike Wirth told analysts during the company’s first-quarter earnings call in April that this timeline should allow the parties “to close the transaction shortly thereafter.”

“We see no legitimate reason to delay that timeline,” Wirth said.

If Exxon prevails in the case, Chevron’s deal with Hess would break up. Woods has said Exxon is not making a play to buy Hess, but wants to defend its right in the interest of shareholders and find out what value is being placed on Hess’ Guyana assets.

Hess has a 30% stake in an oil patch called the Stabroek block off the coast of Guyana. Exxon leads the project with a 45% stake while China National Offshore Oil Corp. maintains 25% stake.

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Chevron CEO says natural gas demand will outpace expectations on data center electricity needs

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Chevron CEO says natural gas demand will outpace expectations on data center electricity needs

Chevron CEO Mike Wirth: Demand for natural gas will be higher than expected

Natural gas demand will likely outpace expectations as electricity consumption surges from artificial intelligence and data centers, Chevron CEO Mike Wirth told CNBC on Monday.

“It’s a little hard to quantify right now because this is evolving so quickly on the AI side,” Wirth told CNBC’s Sara Eisen at the Milken Institute’s Global Conference in Los Angeles. “But I think demand for natural gas is likely to be higher than what people have been estimating up until now.”

Wirth said the move to electrify the nation’s vehicle fleet, heating and manufacturing as well as the increase in demand from data centers will require reliable and affordable backup power generation.

Wind and solar offer affordable power in some regions, but they still face challenges in generating enough electricity to meet peak demand because they rely on variable weather conditions, the Chevron CEO said.

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“Data centers don’t shut down when the sun goes down,” Wirth said. “We need to have the ability to provide baseload supply for all of these needs. I think natural gas will be a big part of that equation going forward.”

Wirth said coal plants are being phased out in the U.S., nuclear power is expensive and geothermal energy is not as proven as other power sources. “You come back to natural gas as the most likely source of that reliable baseload supply,” the CEO said.

Electricity demand in the U.S. is expected to surge by as much as 20% by 2030, according to research from Wells Fargo published in April. Natural gas demand could increase by 10 billion cubic feet per day, or bcf/d, by the end of the decade as a consequence, according to Wells. To put that in context, the U.S. currently consumes 35 bcf/d for power generation and 100 bcf/d total.

Goldman Sachs is forecasting that natural gas will provide 60% of the new electricity demand from data centers, while renewables will provide 40%. The investment bank says natural gas pipeline operators such as Kinder Morgan, Williams Cos. and producer EQT Corp. stand to benefit.

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Lilium (LILM) receives firm order from UrbanLink to put 20 eVTOL jets into service in Florida

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Lilium (LILM) receives firm order from UrbanLink to put 20 eVTOL jets into service in Florida

Electric vertical takeoff and landing (eVTOL) developer Lilium has announced a new partnership with advanced air mobility (AAM) operator UrbanLink that includes the purchase of at least 20 all-electric eVTOL jets. The aircraft will be operated around Florida as UrbanLink looks to become the first US airline fully committed to the nascent technology.

Lilium ($LILM) is a startup founded in Munich, Germany, in 2015 that has since expanded its footprint of development teams across Europe and the United States. Its current staff sits around 1,000 personnel, including 500 aerospace engineers, who continue to work toward bringing Lilium’s unique eVTOL Jet design to commercial operations in Regional Air Mobility (RAM).

Last fall, we saw Lilium achieve development certification from the European Aviation Safety Agency (EASA), enabling the startup to continue developing, testing, and preparing its eVTOL jets ­en route toward certification and production before commercial operations.

Speaking of commercial operations, Lilium announced a new partnership with PhilJets in February to bring eVTOL jet rides to the Phillippines. Today, Lilium announced another partnership, this time with UrbanLink Air Mobility in the US, that includes a firm order with room for even more eVTOL jet sales in the future.

eVTOL jet
UrbanLink’s planned eVTOL service map / Source: Lilium

Lilium sells 20 eVTOL jets with opportunity for 20 more

Lilium shared details of its new partnership with UrbanLink today. The partnership includes a firm order for at least 20 eVTOL jets with an option for an additional 20 aircraft. The deal also includes scheduled pre-delivery payments from UrbanLink as the AAM operator looks to become one of the first US airlines to fully embrace aviation technology and integrate eVTOLs into commercial operations.

UrbanLink is led by Ed Wegel, a veteran in the aviation industry who previously served as founder and CEO of charter airline GlobalX alongside stints at Atlantic Coast Airlines and JetBlue. Wegel spoke:

While many airlines have discussed the potential of operating eVTOL aircraft, none have made a definitive commitment. UrbanLink will be the first airline in the U. to integrate eVTOL aircraft into its fleet. We are dedicated to revolutionizing the way people move to and from as well as within urban cores. After thorough evaluation of various manufacturers, we found the Lilium Jet to be the optimal choice for our needs, thanks to its superior cabin design, range, capacity, and cost-effectiveness.

To begin, UrbanLink intends to put the initial 20 eVTOL jets from Lilium into operation around South Florida, offering emissions-free flight routes between Miami, West Palm Beach, Boca Raton, Fort Lauderdale, and Marco Island.

Lilium began producing its first eVTOL jets in late 2023 and is targeting its first piloted flight tests ahead of airworthiness certification by the end of the year. Lilium CCO Sebastien Borel spoke about the company’s progress and its new collaboration with a regional airline like UrbanLink:

We are proud that UrbanLink has selected the Lilium Jet for its network and operations. This is a huge milestone, not only for Lilium, but for the commercialization of eVTOLs in the US We believe that this purchase of eVTOL aircraft is the first by a commercial operator that isn’t invested in the manufacturer that it is purchasing from. This is a sign that the market for eVTOL aircraft has matured and there is growing demand for aircraft that can provide connections between, rather than just within, cities. I know that Ed has the vision and operational expertise to make regional air mobility a success

UrbanLink intends to begin commercial flight services with the Lilium eVTOL jets by late 2026.

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