Tesla's Only European Production Site in Germany
4% Wage Increase Decided Despite No Union
"Better Than Collective Agreement" vs "Negative Impact"
The Tesla factory in Germany, which adheres to a no-union management principle, reportedly raised employee wages by 4% starting this month. On the 5th (local time), the local media Frankfurter Allgemeine Zeitung (FAZ) reported, "The Tesla Germany factory has implemented its second wage increase this year, and Tesla emphasized that the union played no role in the wage increase." Approximately 12,500 people work at Tesla's only European production site in Germany.
In February, the Tesla Germany factory raised production workers' wages by a flat 2,500 euros per year (about 3.75 million KRW), and recently converted 500 temporary workers to full-time employees. Tesla stated, "In a situation where the German automotive industry is discussing layoffs and plant closures, this is good news for our employees," adding, "The IG Metall union, the industrial union for the German automotive sector, was not involved in the wage increase."
In Germany, industrial unions and employer associations typically establish collective agreements as part of labor relations. However, since the factory's establishment in 2022, Tesla has rejected this German-style labor relations system. Currently, IG Metall is negotiating with employers demanding a 7% wage increase in the automotive sector, but Tesla proactively settled on a 4% increase. Regarding this, Andre Tierich, head of Tesla's German factory, claimed, "Even unskilled production workers earn more than 40,000 euros per year (about 60 million KRW). This is a much better condition than collective agreements."
Despite the wage increase, the German labor community warns that Tesla's no-union management negatively affects working conditions. According to IG Metall on the 1st, a survey showed that 83% of Tesla Germany factory employees feel they are overworked, and 59% regularly experience physical discomfort related to their work. Currently, only about one in ten employees feel they can endure the current work intensity until retirement.
In September, it was revealed that Tesla Germany factory management conducted surprise home visits to check whether employees' sick leaves were genuine. Management stated that the sick leave rate in August reached 15-17%, and besides the visits, they investigated "why emergencies always occur on Fridays." Erik Demler, the factory's HR manager, said, "We selected 30 suspicious employees who took many sick leaves. Most were covertly aggressive." Tierich, the factory head, said, "The sick leave rate recently dropped below 10%," but added, "(This) is an issue that must be discussed in relation to labor costs and profitability."
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