Tensions are rising at Tesla Gigafactory Berlin as the automaker accuses a local union of a coup against the head of its workers’ council.
Tesla operates the only auto plant in Germany without a collective bargaining agreement with a union and it’s not sitting well with IG Metall, the most powerful union in the country.
Plants in Germany have workers’ councils, which can, but in Tesla’s case isn’t, control by a broader union.
Earlier this year, a majority of Tesla Gigafactory Berlin workers voted against union representatives of IG Metall in their new work council, but the union has still made significant progress. The powerful union managed to get 16 seats on the worker council, more than any other group.
IG Metall has been claiming that Tesla is using anti-union tactics and alleges issues with safety, pay, and work-life balance to justify unionizing.
Tesla has denied those accusations and claims that its employees are happy without a union.
However, Tesla admits that the situation is not without issues.
This summer, the company held a factory-wide meeting where the union issue was discussed, and the meeting turned bizarre when plant manager Andre Thierig threatened to take away employee cutlery after he noted that the plant had to order 65,000 coffee cups because they kept disappearing.
After the meeting, IG Metall union secretary Jannes Bojert threatened the potential use of a strike to force Tesla to the table for a collective bargaining argument.
Michaela Schmitz, the pro-management leader of Tesla Giga Berlin’s Worker’s Council, claims that IG Metall is the one creating a difficult environment at the plant.
IG Metall is now ramping things up by filing in court a request to remove Schmitz from her role at the council over claims of violation of German labour laws meant to prevent companies from impeding unionization efforts.
Tesla described the move as “desperate” and an attempted coup to take control of the workers’ council.
The automaker claimed:
Our independence and the resulting good working conditions and secure jobs at our plant are a constant source of annoyance for the union.
Tesla has been embroiled in several fights against unions around the world – more famously against IF Metall in Sweden and UAW in the US.
Electrek’s Take
With Tesla greatly reducing its employee stock compensation over the last few years, they are not benefiting as much from the recent stock price increase, while CEO Elon Musk is becoming the richest man of all times.
Considering stock options were Musk’s go-to arguments against unions, things might become more difficult for Tesla on that front.
Then, we need to take into account that Tesla’s sales are significantly down in Europe this year. It could put Tesla’s Berlin factory at risk of layoffs.
There were also significant layoffs and cuts in the US this year while UAW had a great victory against the big three in Michigan.
I wouldn’t be shocked to see unions make gains against Tesla in 2025.