Elon Musk's Tesla agrees to offer a pay rise to workers at its German plant - Hindustan Times

Elon Musk's Tesla agrees to offer a pay rise to workers at its German plant

Reuters | | Posted by Singh Rahul Sunilkumar
Oct 13, 2023 10:25 AM IST

Tesla faces pressure to increase wages at German plant.

Tesla said on Thursday it will offer a pay rise to workers at its German plant, where unions have said they earn below the industry average.

A Tesla Model S.(REUTERS)
A Tesla Model S.(REUTERS)

The U.S. electric vehicle maker said it will inform staff in November of the level of the pay rise, adding it raised wages by 6% last year.

Tesla, unlike other carmakers in Germany, does not have a collective bargaining agreement governing wages.

Under last year's agreement, workers at Volkswagen , Mercedes-Benz and BMW were offered a 5.2% pay rise in June 2023 and a 3.3% pay rise in 2024 as well as an inflation premium for full-time workers of 3,000 euros ($3,160).

German union IG Metall has previously said that Tesla wages were around 20% below those offered under the collective bargaining agreement.

Tesla, which currently employs around 11,000 workers at the plant, will need to attract further staff to carry out a sweeping expansion planned to begin the first half of next year which will double its battery capacity and vehicle output.

IG Metall said Tesla told workers of the upcoming raise at a series of meetings held at the plant this week.

The meetings were called to warn staff about IG Metall's "questionable methods", according to a copy of the invitation seen by Reuters, after the union said it would visit the site to inform workers about union membership.

Tesla did not respond to earlier Reuters requests for comment on the meetings.

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