Tesla plans to provide its German workforce with a salary increase this year

In contrast to other German automakers, Tesla does not operate under a collective bargaining agreement that sets standardized wage levels.

Tesla has announced plans to implement a salary increase for employees at its German facility, addressing concerns raised by unions regarding wages below industry standards.

In November, the U.S. electric vehicle manufacturer will disclose the extent of the pay raise, citing a 6 percent increase in wages implemented the previous year.

It's worth noting that Tesla differs from other automakers in Germany in that it operates without a collective bargaining agreement overseeing wage structures.

In contrast, as part of an agreement established last year, workers at Volkswagen Group, Mercedes-Benz, and BMW were offered a 5.2 percent wage hike in June 2023, followed by a 3.3 percent increase in 2024, in addition to an inflation-linked premium of 3,000 euros ($3,160) for full-time employees.

According to German union IG Metall, Tesla's wages were reported to be approximately 20 percent lower than those stipulated in the collective bargaining agreement.

With a workforce of roughly 11,000 employees at the plant, Tesla aims to draw in additional staff to support an extensive expansion set to commence in the first half of the coming year, which will see a doubling of battery capacity and vehicle production.

IG Metall stated that Tesla informed employees about the impending salary increase during meetings held at the plant this week.

The meetings were called to warn staff about IG Metall's "questionable methods," according to a copy of the invitation seen by Reuters, after the union said it would visit the site to inform workers about union membership.

Tesla did not respond to earlier Reuters requests for comment on the meetings.

---------This article is partly excerpted from Reuters.