Image: Tesla
Tesla’s long-running standoff with Germany’s largest industrial union is once again heating up, with Gigafactory Berlin management drawing firm lines around wages, working hours, and the future direction of the plant. According to German outlet rbb24, Tesla is categorically rejecting the introduction of a collective bargaining agreement at its Grünheide factory, despite continued pressure from IG Metall (via Teslarati).
At the center of the dispute is working time. Giga Berlin plant manager André Thierig made it clear that reducing the factory’s workweek to 35 hours, a key demand from IG Metall, is a non-starter. “The discussion about a 35-hour week is a red line for me; we will not cross it,” Thierig said, adding that such a move would put the site’s competitiveness at risk.
Wages are another major flashpoint. IG Metall argues that without a collective agreement, Tesla workers remain paid significantly less than employees at other German automakers. District manager Jan Otto told German media that Tesla management often points to its lowest pay grades, even though “the two lowest pay grades aren’t even used in car factories.”
Tesla disputes that characterization. Thierig noted that under the relevant industry-wide collective agreement, workers would have received a 2% wage increase this year. “Because we are in a different economic situation than the industry as a whole, we were able to double wages – by four percent,” he said. “Since production began, this amounts to more than a 25 percent wage increase in less than four years.”
The stakes could rise further in 2026, when Tesla holds another works council election at Giga Berlin. Thierig described the vote as pivotal for the factory’s future, saying, “It will determine whether we can continue our successful path in the future in an independent, flexible, and unbureaucratic manner.” He went even further, warning, “Personally, I cannot imagine that the decision-makers in the USA will continue to push ahead with the factory expansion if the election results favor IG Metall.”
That warning is notable given Tesla’s ambitious plans for the site, including a massive battery cell production expansion worth around €1 billion ($1.18 billion USD). Any prolonged labor unrest or changes to working hours could also complicate Tesla’s efforts to ramp up production at Giga Berlin as Model Y demand remains strong.
Tesla and IG Metall have been locked in conflict for years, with both sides accusing the other of misrepresenting facts and motivations. With expansion plans, production targets, and union influence all on the line, the next 12 months could prove decisive for Tesla’s only European car factory.
Damn unions. They're destroying the whole country. Unions only serve to protect the lazy man. Tesla plants have more teamwork potential than any other company. We don't need unions ruining that. The workers might benefit in the short term, but unions always end up driving companies out of business. And buyers want quality. This is why everyone prefers cars from Tesla Shanghai. A non union plant where the job is done right.