Electric car giant Tesla has reportedly raised wages for all employees at its Berlin Gigafactory, independent of pressure from the German trade union IG Metall, which has closely monitored Tesla's operations.
Notably, Tesla's wage increase for Berlin employees comes as some German automakers face difficulties in keeping certain factories operational. For example, Volkswagen plans to close at least three factories in Germany, which could result in tens of thousands of job cuts.
According to Reuters, Tesla announced the pay raise on Tuesday. Earlier this month, Tesla converted 500 temporary positions into permanent roles, further strengthening the factory's workforce and economic stability.
Tesla's HR director, Erik Demmler, stated: "This is especially welcome news for our employees, particularly at a time when many companies in the German automotive industry are discussing layoffs and factory closures."
The Berlin plant employs nearly 12,000 workers and is Tesla's only production facility in Europe, with an annual capacity currently exceeding 375,000 Model Ys.
In contrast, Volkswagen union leaders recently disclosed that, in an effort to reduce costs and enhance competitiveness, Volkswagen is considering closing at least three factories in Germany. Volkswagen has also asked its German employees to accept a 10% pay cut, a measure the company views as necessary to sustain employment and competitiveness amid profit declines to a three-year low and the looming risk of union strikes.