Tesla announced on Thursday that it will offer a pay rise to employees at its German manufacturing facility, known as Giga Berlin. The company stated that the specifics of the wage increase will be communicated to staff in November. This follows a 6% wage hike implemented by Tesla last year.
Unlike traditional automakers in Germany such as Volkswagen, Mercedes-Benz, and BMW, Tesla does not operate under a collective bargaining agreement for wages. According to last year’s agreement among these traditional carmakers, workers received a 5.2% pay rise in June 2023, a 3.3% increase for 2024, and an inflation premium of 3,000 euros ($3,160) for full-time employees, reports Reuters.
German union IG Metall has previously criticized Tesla for paying wages that are approximately 20% lower than those offered under collective bargaining agreements in the country. “Tesla wages were around 20% below those offered under the collective bargaining agreement,” stated IG Metall.
The wage increase comes as Tesla, which currently employs around 11,000 workers at its German plant, plans a significant expansion set to begin in the first half of next year. The expansion aims to double the company’s battery capacity and vehicle output, necessitating the attraction of additional staff.
IG Metall revealed that Tesla informed its workers about the upcoming pay rise during a series of meetings held at the plant this week. These meetings were initially called to caution employees about IG Metall’s “questionable methods,” as per an invitation copy seen by Reuters. This follows the union’s announcement that it would visit the Tesla plant to inform workers about union membership.
