Tesla (TSLA) will offer increased pay to employees at German facility

Electric vehicle giant, Tesla (NASDAQ: TSLA) announced Thursday that company plans to increase the pay for its workers at its facility in Germany, where unions have said they earn below the industry average.

The company plans to disclose the exact details of the pay raise come November, following a 6% increase in wages last year.

It's worth noting that unlike other car manufacturers in Germany, Tesla does not have a collective bargaining agreement that governs wage negotiations.

under the previous year's agreement, workers at Volkswagen, Mercedes-Benz, and BMW were offered a 5.2% pay raise in June 2023, a 3.3% pay raise in 2024, and an inflation premium of 3,000 euros ($3,160) for full-time workers.

German union IG Metall has voiced concerns that Tesla's wages were around 20% lower than those stipulated in the collective bargaining agreement.

The EV maker currently has approximately 11,000 employees at its German plant and will need to recruit additional staff as part of an extensive expansion set to begin in the first half of the coming year.

IG Metall reported that Tesla informed its workers about the impending pay increase during a series of meetings held at the plant this week.

Shares of TSLA are down 1.76% near end of day trading on Thursday.

By Michael Elkins | [email protected]

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