Berliner Boersenzeitung - Showdown looms between Tesla and German union

The works council, an elected body of employees that negotiates pay deals and working hours with management, has long been an unshakeable component of German corporate life, especially in the auto sector.

But at Tesla's "Gigafactory", it has been a persistent bugbear for the management since the plant opened in 2022 -- with this week's Monday-to-Wednesday ballot marking a high point in tensions.

In one corner, there is Musk, the world's richest man and a staunch advocate of libertarian ideals.

In the other, there is a century‑old metal workers' union defending Germany's tradition of workers' rights and accusing the US carmaker of engaging in "union busting".

Outside the factory, which employs around 10,000 people in rural Gruenheide in Brandenburg state, an IG Metall banner calling for "change" hangs next to a giant mural celebrating labour solidarity.

IG Metall has accused the carmaker of poor working conditions and covert redundancies, all enabled by the lack of a collective agreement to protect workers -- almost unheard‑of in Germany's automotive industry.

The union won the previous elections in 2024 with 39 percent of the vote. But then four non‑union lists seen as more accommodating toward management joined forces to secure a majority.

- 'A real exception' -

Tesla "is a real exception" in Germany given the absence of a union majority in the works council, said Ernesto Klengel of the Hans-Boeckler Foundation, which has close ties to the trade unions.

He charged that at Tesla "the management has so far not placed any value on constructive cooperation".

Although it is not unusual for various parties to seek to influence in works council elections, this "highly confrontational approach" is unprecedented, he said.

For Tesla, the dispute is another headache in Europe, where sales have been hit amid strong Chinese competition.

In Germany there has also been a backlash against the e-car pioneer after Musk strongly supported the far-right Alternative for Germany (AfD) party.

A number of Tesla staff spoke to AFP outside the plant, all asking not to be named given the sensitivity of the labour issues at play.

One of them, a logistics worker from Nigeria, said he was one of around 100 candidates in the plant for IG Metall.

He said he had been working at Tesla for three years and charged that management "does not listen to employees", whereas "IG Metall is working hard to represent our interests".

He also complained that workers from the African community did worse "in the allocation of promotions and certain benefits" and that "very few" African employees were team leaders at the plant.

Another employee, who asked to be called Vikram, said "many colleagues complain about harassment and other problems because they take breaks".

Tesla did not respond to a request from AFP for comment on the allegations.

Another worker, who identified himself as Ali, 31, said he was very satisfied at Tesla, particularly with his salary.

"They give us everything -- shares, good facilities," the body shop worker told AFP.

- Musk threat -

Andre Thierig, the director of the site, has told local media that Tesla pays its employees better than its competitors do and has argued that collective agreements are destroying German industry.

In early February, Thierig accused a member of IG Metall of illegally recording a works council meeting.

The union promptly declared that it was preparing legal action against what it called "obstruction of union activity".

Musk himself has weighed in on the dispute, warning that there will be no further investment in the factory if IG Metall becomes the majority union.

Jan Otto, regional manager of IG Metall in eastern Germany, retorted that the US billionaire should "accept the rules of the game of co-determination and democracy in German companies".

Otto has called on the government of Brandenburg to step in.

Contacted by AFP, the regional economy ministry said it "encourages companies in Brandenburg, including Tesla, to conclude collective agreements" and offer "attractive working conditions".

(A.Berg--BBZ)