Tesla Advanced Automation Germany, which Tesla bought last year when it was called Grohman Engineering, has almost 700 workers who may strike because union IG Metall says the workers are getting paid about 30 percent less than the union pay scale. Specifically, the union says the workers on average should be paid about €250 ($268) a month more than the California-based automaker has offered to pay, while Tesla told the German publication that the workers are being compensated fairly.
Tesla Advanced Automation Germany is based in Prüm, near the Nürburgring, and was acquired as part of Tesla's plans to ramp annual vehicle production up to as many as 500,000 units a year by 2018. Tesla earlier this year set its July deadline to start Model 3 deliveries, with full-scale production to be in place by September. Tesla chief Elon Musk last week tweeted that the Model 3's "final" reveal will be in July. Through March, Tesla delivered about 25,000 vehicles globally, including about 13,450 Model S sedans.
That said, Musk has been critical of unions in general, and United Auto Workers (UAW) in particular. Specifically, Musk has said the UAW's allegiance is to the larger, Michigan-based automakers, and that his company out-compensates its workers relative to the Big Three. Musk has even gone as far as saying that Tesla will add worker perks such as free frozen yogurt stands and a Tesla electric pod car roller coaster at its Fremont, California factory.