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Sweden’s government ready with electricity compensation for businesses

Sweden's government has finalised its compensation package for businesses affected by high power prices, a full seven months after it promised the system would be in place.  

Published: 8 May 2023 20:27 CEST
Sweden's government ready with electricity compensation for businesses
Businesses will be able to apply for electricity price compensation from Majy 30th. Photo: Janerik Henriksson/TT

At a meeting on Monday afternoon, the government formally decided on the government order under for the compensation, meaning businesses can start to apply to the Swedish Tax Agency to receive the money from May 30th. 

The decision came after the European Commission on Friday gave its approval to the system, a month after the government first sent in its application for the scheme to accepted under state aid rules. 

“I’m happy to be able to announce that the government has as quickly as possible decided on the government order,” Sweden’s business minister Ebba Busch said in a statement. 

It is seven months since the date that the government and the Sweden Democrats had promised that the electricity price compensation would be available to businesses. 

The commission said that the system had to be changed so that companies and organisations who already had a fixed price electricity contract in place before February 24th 2022 which remained in force until after February 24th 2023 would not be eligible for a payment. 

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STRIKES

Why a Swedish metalworkers’ union is taking Tesla to court

Sweden's metalworkers' union, which is still striking in a row over Tesla's lack over a collective bargaining agreement, is now taking the carmaker to court over its refusal to disclose its financial health.

Published: 26 June 2024 07:04 CEST
Why a Swedish metalworkers' union is taking Tesla to court

Tomas With, vice-president of IF Metall, told AFP that the necessary documents were ready and would be filed with the court next week at the latest.

According to the union, Swedish law dictates that companies need to keep unions regularly informed about their financial situation.

Employers who have not signed a collective agreement – which is the case for the American giant – must still inform the unions who have members working for them.

In late October, IF Metall launched a strike against Tesla over its refusal to sign a collective wage agreement, and some 130 mechanics at 10 Tesla repair shops in seven cities walked off the job.

IF Metall then extended the strike to include work on Teslas at other repair shops which served multiple brands.

The strike has since grown into a larger conflict between Tesla and almost a dozen unions seeking to protect Sweden’s labour model, including postal workers, dock workers and even spreading to neighbouring Nordic countries.

Since March, IF Metall has been organising meetings with Tesla’s Swedish repair shops to obtain information about the company’s financial affairs.

“In recent months, management has generally emphasised the need to make savings … ‘Will they reduce the number of employees or not?'” With asked.

While most of the workshops provided this information, one in Uppsala, north of Stockholm, refused, arguing that it was in conflict with IF Metall.

Negotiated sector by sector, collective agreements with unions are the basis of the Nordic labour market model.

Guaranteeing wages and working conditions, they cover almost 90 percent of all employees in Sweden and 80 percent in Denmark.

Despite the fact that many of Tesla’s employees in Sweden are union members, they cannot benefit from the collective bargaining agreements unless Tesla signs on to them.

Tesla chief executive Elon Musk has long rejected calls to allow the company’s 127,000 employees worldwide to unionise.

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