Tensions rise between Tesla and the German union

A labour dispute is intensifying at Tesla’s factory near Berlin as Germany’s IG Metall union attempts to gain control of the plant’s works council in a vote taking place from Monday to Wednesday. The works council, an elected employee body that negotiates pay and working conditions with management, is a key element of Germany’s corporate structure, particularly in the automotive sector. At Tesla’s plant in Gruenheide, however, relations between management and organised labour have remained tense since the facility opened in 2022.

IG Metall has accused the electric carmaker of poor working conditions and covert job reductions, arguing that the absence of a collective labour agreement leaves workers without adequate protections. The factory employs around 10,000 people in Brandenburg state. The union secured 39 percent of the vote in the previous works council election in 2024. However, four non-union lists later combined to form a majority that was seen as more supportive of management.

Labour experts say Tesla’s situation is unusual within Germany’s automotive sector. Ernesto Klengel of the Hans-Boeckler Foundation said the lack of a union majority on the works council makes Tesla “a real exception” and criticised management for not prioritising cooperation with employee representatives.

The dispute adds to Tesla’s challenges in Europe, where sales have faced pressure from increased competition from Chinese manufacturers. In Germany, the company has also faced criticism after chief executive Elon Musk expressed support for the far-right Alternative for Germany (AfD) party.

Some employees speaking outside the factory raised concerns about workplace conditions. One logistics worker from Nigeria, who said he had worked at the plant for three years and was among around 100 IG Metall candidates in the election, accused management of failing to listen to staff. He also alleged that workers from the African community had fewer opportunities for promotions and leadership roles.

Another employee, who identified himself as Vikram, said some workers had reported harassment and other problems related to taking breaks. Tesla did not respond to requests for comment on the allegations. Other employees expressed satisfaction with working conditions. A body shop worker who identified himself as Ali said he was satisfied with his salary and benefits, including share incentives and workplace facilities.

Andre Thierig, the site director, has told local media that Tesla offers higher pay than many competitors and has argued that collective agreements are damaging Germany’s industrial competitiveness. In February, he also accused a union member of secretly recording a works council meeting.

IG Metall rejected the accusation and said it was preparing legal action over what it described as attempts to obstruct union activities. Musk has also commented on the dispute, warning that the company may halt further investment in the factory if the union gains majority influence. Jan Otto, IG Metall’s regional head in eastern Germany, said Musk should accept Germany’s system of co-determination and corporate democracy. He has also urged the Brandenburg state government to intervene.

The regional economy ministry said it encourages companies operating in Brandenburg, including Tesla, to sign collective agreements and provide attractive working conditions.