Tesla Announces Wage Increase For German Workers

Tesla – an American multinational automotive and clean energy company, founded by tech billionaire Elon Musk – has announced a 4% wage raise for German workers amid union pressure. 

Tesla management in Germany informed workers that they would receive a 4% wage raise effective in November after unions complained that they earned below the industry average.

German workers will also receive a bonus in December. Their wages will increase further in February. 

What can German workers expect?

Around 11,000 German workers working in Tesla will receive a 4% wage raise effective in November. Tesla will also pay a 1,500 euro ($1,609) bonus to workers in Germany in December. In February, the annual wages for the German workers will be increased by an additional 2,500 euros. Tesla will also produce its new next-generation electric car at the German factory in the coming months. 

What did German workers say?

Earlier, German union IG Metall said that Tesla wages were around 20% lower than what was offered under the collective bargaining agreement. The union demanded fair wages for Tesla workers in Germany. 

Tesla workers in Germany said that they had “lower wages.” The workers also complained that they do not have the same insurance or pensions like other industry workers. 

Currently, the company does not have a collective bargaining agreement governing wages in Germany. Tesla has never signed collective bargaining agreements anywhere in the world. 

However, other carmakers in Germany have a collective bargaining agreement governing wages.

The recent wage increase by Tesla demonstrates the company’s dedication to ensuring fair compensation for its German workforce.

Last month, Tesla workers’ strike was held in Sweden after the company refused to sign a collective wage agreement. Tesla workers’ strike affected around Tesla’s 130 mechanics at seven workshops across Sweden. Tesla workers in Sweden urged the company to sign an agreement offering the same working conditions to Tesla’s mechanics as those offered to other car mechanics in Sweden. IF Metall union spokesman Jesper Pettersson confirmed about the workers’ strike.

In September, Tesla faced federal lawsuit for racial harassment at the workplace. Tesla was sued by the United States Equal Employment Opportunity Commission ( EEOC) over claims of extreme harassment of Black workers at its California assembly plant.