Tesla Increases Wages by 4% for German Employees in Response to Union Demands

06 Nov, 2023

Tesla Increases Wages by 4% for German Employees in Response to Union Demands

Tesla's management in Germany recently announced a 4% wage increase for approximately 11,000 employees, set to take effect in November, as reported by The Wall Street Journal. This move comes in response to ongoing pressure from unions, which have previously stated that Tesla workers earn below the industry average.

In addition to the wage hike, the U.S. electric vehicle manufacturer plans to provide a 1,500 euro ($1,609) bonus in December to help offset inflation. Starting from February, Tesla will further enhance the annual salaries of its German workforce by an additional 2,500 euros. These details were shared by individuals familiar with the matter and reported by The Wall Street Journal. Notably, Tesla had increased wages by 6% just last year.

German union IG Metall has been a vocal advocate for Tesla workers, highlighting that their wages were approximately 20% lower than those established by the collective bargaining agreement in the industry.

During a visit to Germany, Tesla CEO Elon Musk made the promising announcement that the company intends to manufacture its next-generation electric car at the German factory following a planned expansion next year. This development, reported by WSJ, signifies Tesla's commitment to expanding its presence and production capabilities in Germany.

It's worth noting that Tesla, unlike many other automakers in Germany, does not operate under a collective bargaining agreement that governs wages.

As of now, neither Tesla nor IG Metall have issued an immediate response to Reuters' request for comment.