Tesla’s ongoing dispute with Germany’s largest industrial union has once again come to the forefront, with tensions escalating at Gigafactory Berlin. Management at the plant is standing firm on key issues such as wages, working hours, and the overall direction of the factory. According to reports from German outlet rbb24, Tesla is adamantly refusing to entertain the idea of a collective bargaining agreement at its Grünheide facility, despite continued pressure from IG Metall.
The main point of contention revolves around working hours, with Giga Berlin plant manager André Thierig making it clear that reducing the workweek to 35 hours, a demand from IG Metall, is a non-negotiable issue. Thierig emphasized that implementing a 35-hour workweek would jeopardize the plant’s competitiveness in the market.
Wages are also a major source of conflict, as IG Metall argues that Tesla workers are paid significantly less compared to employees at other German automakers due to the absence of a collective agreement. District manager Jan Otto pointed out that Tesla often refers to its lowest pay grades, which are not typically used in car factories.
Thierig, on the other hand, disputes these claims by highlighting that under the relevant industry-wide collective agreement, workers would have received a 2% wage increase this year. However, due to the unique economic circumstances at Tesla, the company was able to double wages by four percent since production began, resulting in a more than 25% wage increase in less than four years.
Looking ahead to 2026, Tesla will hold another works council election at Giga Berlin, which Thierig views as a crucial moment for the factory’s future. He emphasized that the election will determine whether the plant can continue its successful trajectory in an independent, flexible, and efficient manner. Thierig also warned that a victory for IG Metall in the election could potentially impact Tesla’s expansion plans at the site, including a massive battery cell production expansion worth around €1 billion.
The ongoing conflict between Tesla and IG Metall, which has been ongoing for years, has implications for the company’s production targets, expansion plans, and overall influence in the region. As Tesla aims to ramp up production at Giga Berlin amid strong demand for the Model Y, the next year will be crucial in determining the future of Tesla’s only European car factory.