Tesla has announced higher wages for workers at its Gigafactory Berlin, without any push from the powerful German union IG Metall.
The wage increases come at a time when major players in the German automotive industry are facing challenges, with Volkswagen planning to close at least three factories in the country, potentially resulting in tens of thousands of job losses.
Tesla’s HR director, Erik Demmler, highlighted the significance of the raise, stating:
“This is further particularly welcome news for our workforce – especially at a time when many companies in the German automotive industry are talking about job cuts and plant closures.”
IG Metall, which has been a vocal critic of Tesla’s workplace conditions, has claimed that the working environment at the Gigafactory leaves little time for “leisure, family, and recovery.” The union has also said it has gained members due to health and safety concerns at the plant.
Tesla’s relationship with union organizations has been contentious, both in Europe and the United States. The company faced a major conflict with IG Metall in Sweden over its refusal to sign a collective bargaining agreement.
In the US, the United Auto Workers (UAW) union has pushed to organize workers at Tesla’s Fremont Factory, but the company has resisted these efforts.
Despite Elon Musk’s offer for the UAW to hold a vote at the Fremont Factory, the union has never taken him up on the offer.
Additionally, Tesla has fought several lawsuits that claimed workers were not allowed to wear pro-Union merchandise.
The wage increases at Gigafactory Berlin, coupled with Tesla’s decision to make 500 temporary jobs permanent, suggest that the company is bucking the trend in the German automotive industry, bolstering its workforce and economic position as it diverges from the struggles faced by some of its German counterparts.
