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Tesla Caves to German Workers’ Salary Demands

Big raises in Germany may heighten tensions in California plant.

by on Oct.19, 2017

Tensions are reportedly high at Tesla's Fremont, California, plant after the company reportedly fired hundreds of underperforming workers.

Facing what it admits are production bottlenecks as it moves to roll out its critical Model 3 from its big factory it Fremont, California, Tesla has agreed to give workers at its German engineering unit a substantial pay increase.

German daily newspaper Die Welt reported the wage pact that included a new pay structure that will raise workers’ salaries by about 30% from current levels, the division’s works council said.

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“We will now get to a competitive wage level,” a spokesman for the company’s works council, which is required by German law, said this week after a staff gathering at Tesla Grohmann Automation GmbH. (more…)