Tesla increases wages for its German workers

Tesla will not have lasted long in the face of union pressure. All employees at its Berlin Gigafactory are receiving a salary increase.

IG Metall, the all-powerful union of the German automotive industry, has succeeded in bending the giant Tesla. The union had initiated a social movement a month ago, claiming that employee wages at the Tesla Berlin Gigafactory remained 20% lower than those of competitors BMW and Mercedes-Benz.

In order to calm the unrest, the American manufacturer had announced that employees at its German factory would receive a salary increase in 2024. According to The Wall Street Journal, the company’s German management informed last week the 11,000 workers on the Berlin site that they would receive a 4% salary increase starting in November. Tesla will also pay a €1,500 bonus in December to compensate for rising inflation and will increase all annual salaries by €2,500 starting February 2024.

During a site visit, Elon Musk also promised that the company would produce its new next-generation electric car for less than €25,000 at the German factory.

It is obvious that Tesla’s priority is to face the democratization of electric cars as efficiently and quickly as possible. Carlos Tavares, CEO of Stellantis, has proved with the Citroën ë-C3 that a model under €25,000 is no longer a pipe dream, so it is crucial not to miss the train.