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Tesla’s management in Germany has conveyed plans to increase wages for 11,000 employees, addressing concerns about wages below the industry average. The move is part of Tesla’s ongoing efforts to bolster its workforce and enhance its competitiveness in the German labor market.
Progressive pay raises
Starting this November, Tesla’s German employees will see a 4% wage increase. In addition to this raise, Tesla will provide a 1,500 euro (USD 1,609) bonus in December to help offset inflation. This marks a step forward in Tesla’s commitment to its employees in Germany.
Future wage growth
From February onwards, annual wages for German workers at Tesla will receive a further boost of 2,500 euros. These incremental increases underscore Tesla’s dedication to enhancing the compensation packages of its German workforce.
Addressing disparities
German union IG Metall has previously expressed concerns that Tesla’s wage levels were approximately 20% below the industry standards set by the collective bargaining agreement. Tesla’s recent wage adjustments aim to address these disparities and ensure that its employees are competitively compensated.
Strategic growth plans
Tesla is not only focusing on wage improvements but is also eyeing expansion in Germany. During a recent visit to the country, CEO Elon Musk announced plans to manufacture the next-generation electric car at the German factory after an upcoming expansion. This move aligns with Tesla’s strategic growth plans.
A different approach
Notably, Tesla does not have a collective bargaining agreement governing wages, unlike many other carmakers in Germany. Tesla’s approach to employee compensation is tailored to its specific needs and goals.
Both Tesla and IG Metall have not provided an immediate response, but these recent announcements signal Tesla’s commitment to its German workforce and its ambitions for growth and success in the region.
