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Tesla Grünheide Boss Rejects Union Contract, Warns Election Outcome Could Hit Expansion

Management highlights above-tariff pay increases to justify opposing a sector agreement.

Overview

  • Tesla’s Grünheide plant will not enter a collective bargaining agreement, Werksleiter André Thierig said.
  • Thierig said Tesla granted a 4% pay rise this year versus 2% in the industry deal, bringing cumulative increases to more than 25% since production began.
  • He called a shift to a 35-hour week a red line, arguing it would threaten the factory’s competitiveness.
  • He cast the 2026 works council election as decisive and questioned whether U.S. decision-makers would pursue expansion if IG Metall secured a majority.
  • IG Metall countered that without a Tarifvertrag Tesla pay trails other German auto plants, citing the sector pact with a €600 payment in 2024 and raises of 2.0% from April 2025 and 3.1% from April 2026.