Tesla Raises Wages at German Gigafactory

BERLIN (Reuters) – Tesla has increased wages for all employees at its gigafactory near Berlin by 4% since early November, the company announced on Tuesday.

The pay raise follows Tesla's decision to transition 500 temporary workers to permanent positions as of November 1.

Notably, the German union IG Metall, which has criticized working conditions at the Gruenheide site, was not involved in this wage hike, according to Tesla.

"This is further particularly welcome news for our workforce – especially at a time when many companies in the German automotive industry are talking about job cuts and plant closures," stated human resources director Erik Demmler.

Gruenheide is Tesla’s sole European gigafactory and employs approximately 12,000 staff members. Earlier this year, Tesla had reduced its workforce through voluntary departures and did not renew contracts for some subcontractors in a group-wide cost-cutting measure.

The situation for automakers in Germany has been scrutinized, especially with Volkswagen initiating a cost-saving strategy that involves requesting a 10% pay cut from employees to enhance competitiveness and preserve jobs.