Tesla is increasing the wages of German factory workers in response to the positive actions of local unions. This move has attracted great attention as the company's CEO, Elon Musk, may face similar union challenges in the United States.
According to media reports citing insiders, Tesla's German management announced a package plan to improve worker benefits during a visit to a super factory located in the suburbs of Berlin in Musk late last week. Musk also promised to produce Tesla's next generation cars at a German factory.
Tesla's German management has notified 11000 employees that they will receive a 4% salary increase starting from November.
Tesla will also pay a bonus of 1500 euros ($1609) to German employees in December to offset the impact of inflation, and will increase the annual salary of German employees by an additional 2500 euros starting from February next year.
Tesla has been under pressure from IG Metall, the largest union in Germany, who is trying to organize workers at the factory and get Tesla to agree to a union contract. The union has previously stated that Tesla's German workers' salaries are below the industry average.
In October of this year, Tesla announced that it would notify German employees of the salary increase this month and added that the company's salary increase last year was 6%.
According to insiders, during Musk's visit to Germany, he also promised that Tesla will produce the next generation of new electric vehicles here after the German factory plans to expand next year.
In the United States, a major strike that disrupted the automotive industry has just ended. This strike not only caused heavy losses to automakers, but also dealt a heavy blow to the US economy.
Musk has always been a staunch opponent of the union, and Tesla American workers have not yet joined the union. But after a historic victory in the struggle against the "Detroit Big Three", the United Auto Workers (UAW) has set its sights on Tesla. UAW leader Finn predicts that non union companies, like Toyota, will actively increase wages to prevent UAW's involvement.