Tensions are rising at Tesla’s Gigafactory Berlin as management and the IG Metall union engage in a dispute over labor agreements. At the heart of the disagreement is IG Metall’s demand for a collective wage agreement and a reduction in the standard weekly hours to 35. Tesla’s leadership maintains that their current salary structure already offers more competitive pay increases than others in the German automotive sector. The dispute also highlights differing views on factory operation models, union representation, and the implications for upcoming works council elections. Workers at Giga Berlin are watching the developments, as the decisions taken here could have lasting impacts on their employment conditions and the factory’s future expansion.
Compared to earlier discussions about union activity at Tesla’s German plant, the current standoff marks a noticeable escalation. While wage discussions and worker representation have been frequent topics since Gigafactory Berlin began operations, the factory’s management had previously focused on keeping expansion efforts and employee satisfaction on track without directly opposing reduced work hours. Previous reports revealed steadily increasing pay and mounting worker concerns about workplace demands, but the explicit establishment of a “red line” on the 35-hour workweek marks a firmer public stance from Tesla’s management.
Why Is Tesla Opposing a 35-Hour Workweek?
André Thierig, factory manager at Giga Berlin, firmly rejected any move toward reducing the standard weekly hours to 35, emphasizing the potential consequences for operational flexibility. He cautioned that such a shift could have broad impacts on expansion plans and the company’s decision-making autonomy.
“The discussion about a 35-hour week is a red line for me. We will not cross it,”
Thierig stated, drawing attention to the company’s approach in comparison to traditional collective agreements.
How Do Wage Increases at Giga Berlin Compare?
IG Metall representatives have voiced concerns that Tesla’s wages, without a formal collective agreement, are lower than at other automakers in Germany. Tesla responded to these assertions by pointing out their series of pay increases above industry norms, arguing that independence from union contracts allowed for a 4% wage increase this year—double what would be prescribed under the usual industry agreements.
“Because we are in a different economic situation than the industry as a whole, we were able to double the wages – by 4%. Since production started, this corresponds to a wage increase of more than 25% in less than four years,”
Thierig explained, highlighting a focus on company-led wage policy over collective bargaining.
Could the Union Dispute Affect Gigafactory Berlin’s Future?
Thierig signaled that the outcome of the works council election in 2026 could influence the company’s commitment to further expansion at Giga Berlin. If results favor IG Metall’s involvement, Tesla’s leadership may reconsider growth plans, linking the dispute directly to future investments and operational strategies. The prospect of a more unionized workforce has introduced uncertainty into the plant’s long-term direction, with both management and employees aware that decisions made now may determine the site’s trajectory for years to come.
The firm opposition from Tesla’s management toward union demands at Giga Berlin demonstrates how global automakers navigate labor relations in different regulatory and cultural environments. Tesla’s emphasis on maintaining flexibility and independent wage-setting is distinctive when compared with long-established German industry practices, where collective agreements and shorter workweeks are the norm. For employees, the stakes involve not only immediate pay and hours but also the broader influence they may have over factory policies. For industry observers, the outcome at Giga Berlin will offer insight into the evolving landscape for international manufacturers operating in Germany. Workers considering their own priorities can weigh the benefits of collective bargaining—such as standardized working hours and agreements—against company-specific arrangements that can yield more rapid or variable wage increases.
