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Tesla hikes wages at Berlin plant—but unions say it’s not enough

A pay bump for Tesla’s German workforce fails to satisfy unions. Will the push for collective bargaining force the automaker to the negotiating table?

This is a building, this is water and grass, this is car.
This is a building, this is water and grass, this is car.

Tesla Increases Salaries in Grünheide by Four Percent - Tesla hikes wages at Berlin plant—but unions say it’s not enough

Tesla has raised wages by four percent for employees at its Grünheide plant near Berlin. The increase applies retroactively from December 1, 2023, following months of discussions over pay and working conditions. However, the IG Metall union insists the adjustment still falls short of industry standards.

The company confirmed the pay rise was implemented independently, without union involvement. Erik Demmler, Tesla’s HR chief, stated that the decision came from internal review rather than collective bargaining. He also claimed Tesla’s starting salary for production workers exceeds the industry average by about €6,000 annually.

IG Metall has disputed Tesla’s figures, arguing the comparison uses the lowest pay grade and ignores longer working hours at the plant. Jan Otto, the union’s regional head, acknowledged the raise as a step forward but stressed it remains insufficient. The union continues to push for a full collective bargaining agreement, which would cover not just wages but also benefits like a minimum Christmas bonus of €1,500.

So far, no formal negotiations between Tesla and IG Metall have taken place in Grünheide. The union’s demands extend beyond pay, aiming to secure broader protections and standardised conditions for workers.

The four percent wage increase marks Tesla’s latest move in an ongoing dispute over labour terms. While employees receive higher pay, IG Metall maintains that industry-standard agreements are still needed. The union’s push for collective bargaining could shape future discussions between the company and its workforce.

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