Tesla wins labour dispute at German factory

Germany’s largest union on Thursday accused Tesla of pressuring employees at its factory near Berlin after losing a vote to control the workers’ council at the plant. The IG Metall union sought to secure a majority in the works council at Tesla’s “Gigafactory” in Gruenheide during elections held this week.

However, results released late Wednesday showed the union finished second to the management-aligned “Giga United” list.Works councils are elected employee bodies that negotiate issues such as pay and working hours with management and are a central part of corporate governance in Germany, particularly in the automotive sector. IG Metall official Jan Otto alleged that the electric vehicle manufacturer and its owner Elon Musk exerted pressure on staff during the election.

“It was made very clear that supporting IG Metall, or indeed any trade union, can only lead to disadvantages within the company,” Otto said. “It’s clear that Musk has here used the power of capitalism and of money to hollow out democracy,” he added. Otto also questioned whether management should be allowed to campaign strongly for a particular list in Germany.Tesla Germany did not immediately respond to a request for comment.

Relations between IG Metall and Tesla have been tense since the company opened the Gruenheide factory in 2022. The union has repeatedly criticised working conditions at the site and accused the company of withholding sick pay and carrying out covert redundancies, which it says are possible because there is no collective agreement covering employees.The dispute has also moved into the courts. Last month, factory manager Andre Thierig accused a union representative of secretly recording a works council meeting, prompting a police investigation and the seizure of the official’s laptop. IG Metall said it would file a defamation case against Thierig and prepare additional legal action over alleged union-busting. The conflict adds to Tesla’s challenges in Europe, where sales have been affected by rising competition from Chinese carmakers.

In Germany, the company has also faced criticism after Musk publicly expressed support for the far-right Alternative for Germany (AfD) party.