November 06, 2024 – Tesla announced on Tuesday that it has increased the wages of all employees at its Gruenheide Gigafactory in Germany by 4% since the beginning of November.
A month ago, the company stated that it would be offering permanent positions to 500 temporary workers at the factory starting November 1st.
Tesla clarified that the German union IG Metall, which has long criticized the working conditions at the Gruenheide plant, was not involved in this salary hike.
According to Erik Demmler, Tesla’s HR director, “This is particularly welcome news for our employees, especially in a time when many German automotive companies are discussing layoffs and factory closures.”
It is worth noting that Gruenheide is Tesla’s only European Gigafactory, employing approximately 12,000 workers. Earlier this year, Tesla reduced the factory’s headcount through voluntary layoffs. Additionally, as part of a company-wide cost-cutting effort, Tesla did not renew contracts with some subcontractors.
Interestingly, Europe’s largest automaker, Volkswagen, has initiated a cost-cutting plan that includes asking its workers to accept a 10% pay cut to remain competitive and preserve jobs.
