Tesla’s Giga Berlin factory is building more cars than ever, but labor problems are getting worse. IG Metall, Germany’s biggest union, is in a tough fight with Tesla’s leadership. In December 2024, IG Metall asked a court to remove Michaela Schmitz, the plant’s works council head, saying she broke German labor law. Tesla said this was “a desperate” power grab. Tesla claims the union is just trying to stir up trouble for its business strategy .
The union did better in the March 2024 works council election, winning 16 out of 39 seats. This is a big jump for them, even if it’s not a majority.
At first, problems looked simple, arguments over red socks and blue-wrapped snacks. Now, deeper complaints have come out. In March 2025, over 3,000 workers signed a petition calling for longer breaks and more people to be hired. One union voice said, “There often isn’t even time to drink or go to the toilet” .
A survey from IG Metall of 1,200 staff shows serious strain:
- 83% felt overworked often
- 59% had physical pain regularly
- Only 10% thought they could work here until retirement
Tesla’s own numbers from an internal poll say 80% of their 7,500 workers are happy with their jobs .
Disputes over sick leave
The biggest fight is about how Tesla handles employees out sick. IG Metall says Tesla tracks sick workers with personal calls, IT checks, and visits to their homes. Union leaders say the company has refused to pay workers on sick leave and tried to get some to pay back money they were given while sick.
IG Metall says union members at Tesla need legal help 21 times more than usual and that it won back nearly €500,000 from Tesla in German courts last year for wronged workers. Tesla stands by its process, calling it standard in Germany .
Output growth continues
Tesla’s plant manager André Thierig said the Berlin factory is working well. Strong car sales have pushed them to raise production goals for the rest of 2025. By August 2025, the plant turned out its 500,000th Model Y, and its 100,000th redesigned Model Y. The plant serves more than 30 markets now. That includes new shipments to Canada. The Berlin factory employs 11,000 to 12,000 people and made 300 temporary jobs permanent to meet production needs .
Tesla is the only big German automaker refusing a union wage deal. It’s taking heat for this not just in Germany, but in Sweden too. In Sweden, Tesla is dealing with sympathy strikes and lawsuits. The company says it pays as well, or better, than unionized rivals. The union says Tesla’s pay is about 20% lower than what German auto jobs usually offer with a union contract .
Wider political and sales problems
Tesla now faces tough local politics. CEO Elon Musk’s comments in public have hurt the brand’s image. A recent survey found 58% of Germans think worse of Tesla now, and 60% view the brand in a negative light. Sales in Germany slipped 57.8% in the first seven months of 2025, compared to the same period in 2024 .
Long court fights over who runs the works council, plus complaints from staff, look set to continue all year. Giga Berlin is making cars, but trouble with the union could affect how steady that stays. Tesla has to handle strong labor laws in Germany, and its union critics will keep pressure high. The company’s European future depends on how well it can meet high production goals and respond to worker concerns .
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