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Posts Tagged ‘Model 3 production delay possible’

Tesla CEO Musk Flies to Germany to Help Avert Strike

EV maker’s founder appeals to workers, bolsters compensation.

by on Apr.21, 2017

Tesla CEO Elon Musk went to Germany to speak with workers at the company's engineering subsidiary to avert a strike.

Ensuring the introduction of the Model 3 on time this summer must be important to Tesla CEO Elon Musk — he’s flown to Germany to speak directly with employees at the company’s engineering subsidiary in hopes of heading off a strike that could make it impossible to meet the car’s deadline this summer.

While Tesla’s hourly workers in the U.S. are non-union, the 700 employees of Tesla Grohmann Automation belong to IG Metall. The workers have two primary concerns: salaries and layoffs.

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According to Electrek, the workers are unhappy that they are paid 30% less than the union scale calls for. Tesla’s offered a nearly $300 a month bump in pay, although that would still leave them a bit short of their target number. (more…)

Tesla Bracing for Possible Union Strike in Germany

Stoppage could impact Model 3 production schedule.

by on Apr.18, 2017

Tesla will pause production at its plant in Fremont, California, to prep for the Model 3, but could a union strike in Germany halt production even longer?

For months on end, analysts and investors have been wringing their hands over Tesla’s ability to deliver its mass-market Model 3 sedan on schedule and it large numbers. The company raised additional money and spent time assuring all was well.

And now it may not be due to a factor many hadn’t even contemplated: a union strike. In the U.S., Tesla’s hourly employees are non-union, although it is a top target of the UAW; however, the EV maker bought a German automation company last fall, Grohmann Automation Engineering, and its hourly workers are union and they may be the monkey wrench.

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German employees are represented by IG Metall, and the representatives of the powerful union are unhappy with the wages Tesla is paying the employees at its new subsidiary, Tesla Grohmann Automation in Prüm near Germany’s western border with Belgium. (more…)