Tesla Boosts German Worker Wages: Last week, Tesla’s management in Germany made a significant announcement. They informed around 11,000 employees that they would be receiving a 4% wage increase starting in November. This move by the U.S. electric carmaker comes after unions pointed out that their workers were earning below the industry average.
In addition to the 4% wage increase, Tesla plans to pay a 1,500 euro ($1,609) bonus in December to help offset the effects of inflation. Furthermore, from February onwards, they will raise annual wages by an additional 2,500 euros for their German workforce. It’s worth noting that in October, Tesla had already announced its intention to inform its staff about the pay rise this month, and they had increased wages by 6% the previous year.
German union IG Metall had previously stated that Tesla’s wages were approximately 20% lower than what’s offered under the collective bargaining agreement. During a visit to Germany, CEO Elon Musk also made a promise. He stated that the company would manufacture its new next-generation electric car at the German factory following a planned expansion next year.
Notably, unlike many other carmakers in Germany, Tesla does not have a collective bargaining agreement in place governing wages. At the time of this rewriting, Tesla and IG Metall have not responded to Reuters’ request for comments on this matter.
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Our Reader’s Queries
Did Tesla raise wages for German workers amid union pressure?
The management team at Gigafactory Berlin, owned by Tesla, has recently announced a 4% wage increase for its 11,000 employees. This raise will be effective from November onwards.
What is the Tesla bonus in Berlin?
According to The Journal, employees will receive a pay package that includes a bonus of 1,500 euros ($1,613) in December to counteract inflation. Additionally, those in production will receive an annual raise of 2,500 euros ($2,688) starting in February.
Is Tesla unionized in Germany?
Tesla’s global workforce remains union-free, sparking concerns about the potential for strikes to spread to other European countries where collective bargaining is the norm. This is particularly relevant in Germany, Tesla’s key European market.
What is the minimum wage in Germany in 2024?
As of January 1, 2024, Germany has updated its minimum wage to 12.41 per hour, up from 12.00. It’s important to note that this increase may not necessarily keep up with inflationary trends.