Tesla has announced it is raising wages at Gigafactory Berlin amid a new unionization effort at the factory.

Gigafactory Berlin is Tesla’s first large-scale manufacturing effort in Europe and where most of its headcount works on the old continent.

The factory reportedly already employs more than 10,000 workers.

Lately, we noted that IG Metall, a powerful union in the German auto industry, has been ramping up its unionization effort at the plate.

IG Metall and Tesla have been sparing in the media, with the former claiming bad working conditions and the latter claiming that the union is exaggerating the situation.

Earlier this week, the union claimed that 1,000 Tesla workers joined in an effort to ask for better working conditions.

Now amid the unionization effort, Tesla has told the local German media that it is raising salaries at Gigafactory Berlin next month.

The automaker said that it increased salaries by 6% last year and plans to reveal the next raise to employees in November. Although, Tesla said the raise is part of its normal process and not in response to the unionization effort (via Süddeutsche Zeitung translated from German):

“We regularly check the salaries of our employees to ensure fair remuneration. Of course, we inform our employees first about the amount.”

IG Metall district manager Dirk Schulze commented on Tesla’s announcement:

“Any wage increase is welcome, especially since pay at Tesla continues to lag well behind the tariff level in the auto industry in Germany. However, unilateral announcements of wage increases by a company management do not replace negotiations on equal terms.”

It sounds like it’s not the end of the showdown between Tesla and IG Metall.

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MuskWire TLDR:

Tesla has announced that it will be increasing wages at its Gigafactory Berlin in response to a new unionization effort at the factory. The Gigafactory is Tesla’s first major manufacturing facility in Europe and currently employs over 10,000 workers. IG Metall, a powerful union in the German auto industry, has been leading the unionization effort and has accused Tesla of poor working conditions. In response, Tesla has stated that it regularly reviews employee salaries to ensure fair compensation and that the wage increase is part of its normal process. However, the union has stated that unilateral announcements by the company do not replace negotiations on equal terms. This ongoing dispute suggests that the conflict between Tesla and IG Metall is far from over.