German media: Tesla claims wage increases are sufficient, refuses to sign collective agreement
The management of Tesla's super factory near Berlin has firmly opposed the introduction of a collective agreement, leading to an ongoing confrontation with the German metalworkers' union (IG Metall). Tesla claims its wage increases exceed industry standards, while the union holds a different view.
American electric vehicle manufacturer Tesla has resolutely refused to introduce a collective agreement (Tarifvertrag, also known as a collective bargaining agreement) at its plant in Grünheide, near Berlin. "The collective agreement for the relevant industry this year stipulates a 2% wage increase," said André Thierig, head of the Tesla plant, to DPA. "However, due to our different economic situation compared to the entire industry, we can double the wage increase - that is, 4%. Within less than four years since the factory started operations, our total wage increase has exceeded 25%."
The Berlin-Brandenburg-Saxony branch of Germany's largest union, "Metal Industry Union" (IG Metall), is striving to introduce a collective wage standard for Tesla employees. Jan Otto, head of the branch, told DPA: "Without a collective agreement, Tesla's salary level will be significantly lower than in other car factories in Germany." He added: "Tesla management deliberately cites the lowest wage levels as a reference to devalue the collective agreement. In reality, the two lowest wage levels are not used in the automotive industry."
Collective Agreement Between Employers and Unions
In a collective agreement, employers and unions usually reach agreements on key issues such as wages and working hours. However, collective agreements in Germany are not mandatory. The German Trade Union Confederation (DGB) admitted in early 2024 that the rate of application of collective agreements in Germany has been declining in recent years.
Tesla is one of the few car manufacturers in Germany that has not signed any company-level collective agreement and is not a member of the employer association for the metal and electrical industry. This employer association is usually the counterpart organization for negotiating collective agreements with IG Metall.
In 2024, according to the collective agreement reached by IG Metall and the employer association, employees in the metal and electrical industry received a one-time bonus of 600 euros, and their monthly salaries will increase by 2.0% starting in April 2025, and by another 3.1% in April 2026. The conflict between IG Metall and Tesla has long existed, with clear differences.
Jörg Steinbach, then Minister of Economy of the state of Brandenburg, told DPA in early 2024: "If IG Metall and Tesla can reach a collective agreement or at least hold talks, that would certainly be a good thing." But he also emphasized that the negotiations are within the scope of the union and employer's own decision-making.
New Election of the Workers' Congress
Tesla's Grünheide plant manager Thierig also opposes the union's request to shorten working hours, believing it would threaten the factory's competitiveness. "The discussion about a 35-hour workweek is a red line for me; we will not cross it," Thierig said.
In 2026, Tesla will hold a new election for the workers' congress, which Thierig considers significant: "This election will determine whether we can continue our successful path in the future in an independent, flexible, and non-bureaucratic way." "Personally, I find it hard to imagine that if the election results favor IG Metall, the US leadership would continue to push forward the factory expansion plan."
In the union representative election in 2024, although IG Metall was the largest single group, the majority of seats were still won by representatives who were not union members.
Source: DW
Original: toutiao.com/article/1852892789172228/
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