The unions in Germany finally forced Tesla to increase their pay. The CEO of Tesla, Elon Musk, has finally agreed to increase the pay for factory workers. He may face similar pressure from workers in the US to hike wages.
According to the news website, the management of Tesla in Germany unveiled a plan last week to hike the wages of workers during the visit of Musk to a Giga factory, which is located on the outskirts of Berlin. He also announced plans to produce next-generation vehicles at this facility.
The executives of Tesla informed the workers on Friday that their pay will be enhanced by 4% with effect from November 2023. Around 11,000 workers in German factories are expected to benefit from the wage hike. The workers will also receive a bonus of €1,500 in December 2023 to offset inflation. The production workers in Germany will also receive an additional €2,500, an increase in annual wages, with effect from February 2024. In a statement from IG Metall Union, the company agreed to increase wages in an internal event held in October.
Tesla workers already saw a 6% increase in wages last year after the inauguration of the plant. The weekly production of cars at the plant is 5,000. The company has hiked its wages after a confrontation with IG Metall. Musk said it pays higher wages for the workers compared to its rivals. It is the only company in Europe without union representation.
In a message posted on social media, Elon Musk also addressed Tesla workers on Friday. He praised the excellent efforts put in by the workers at the Giga factory in Berlin. He further stated that the factory is amazing and will use art to cover the concrete. Musk also said the Berlin factory will produce next-generation electric cars after an expansion of the plant next year.
Workers in Sweden are on strike
The IG Metall Union, a powerful union, has been pressuring Tesla in Germany to sign a union contract. In a similar move, a small union that represents the workers in Sweden has been on strike. It will meet with company management on Monday for a bargaining contract.
The United Workers Union in the US expects to press for a wage hike
In today’s latest world news, Tesla factories in the US are expected to face pressure from the United Workers Union in the United States of America. The United Workers Union is jubilant after bagging record contracts from the automakers in Detroit and plans to lure non-unionized workers into its fold. After the news of the United Workers Union’s win, Toyota said it was increasing the wages of its non-unionized factory workers in the US.
Tesla is already slashing the prices of its vehicles amid sluggish growth. Its profits could be under pressure with the unionization of workers in Europe and the US, and expect pressure for wage hikes and increasing labor costs. The cost of living has increased in recent years, and workers are asking for liberal wage hikes.