Tesla and Germany’s Largest Union Clash Over Factory Leadership

Tesla is accusing Germany’s biggest union, IG Metall, of trying to create conflict at its electric vehicle factory near Berlin.

The dispute centers on IG Metall’s effort to remove the head of the factory’s works council—Tesla’s employee committee—who is not part of the union, reports Reuters.

IG Metall claims the current council leadership is breaking German labor laws, limiting the union’s ability to represent workers. Tesla, however, called the union’s actions “desperate” and said its factory provides good working conditions without union involvement.

The Berlin factory, known as Giga Berlin, is the only car plant in Germany without a collective wage agreement—an arrangement where unions negotiate pay and benefits for workers. IG Metall argues this leaves workers with worse conditions compared to other factories, while Tesla insists it offers equal or better terms.

IG Metall has struggled to gain influence at Tesla’s Berlin factory. Earlier this year, it won only 40% of seats on the works council, losing to a group it describes as pro-management.

Tensions escalated further in October when IG Metall accused Tesla of using “aggressive tactics” to prevent workers from organizing, after a union representative was removed from the council.

Tesla, for its part, says IG Metall has tried to disrupt its success since the factory opened, adding that the union’s efforts are driven by frustration over Tesla’s independence from collective bargaining agreements.