Tesla increases wages for staff at German gigafactory by 4%

BERLIN (Reuters) -Tesla has raised the wages of all employees at its German gigafactory outside Berlin by 4% since the start of November, the U.S. electric carmaker said on Tuesday.

The hike comes a month after Tesla said it would give permanent jobs from Nov. 1 to 500 temporary workers there. German union IG Metall, which has long criticized working conditions at the Gruenheide site, was not involved, added Tesla.



"This is further particularly welcome news for our workforce - especially at a time when many companies in the German automotive industry are talking about job cuts and plant closures," said human resources director Erik Demmler. Gruenheide, Tesla's only European gigafactory, employs around 12,000 staff. Tesla pared back staffing there earlier this year with voluntary staff reductions.

It also did not extend contracts for some subcontractors as part of a group-wide effort to cut costs. The state of carmakers in Germany has been in focus as Europe's largest, Volkswagen, has embarked on a cost-cutting programme that includes asking workers to take a 10% pay cut in order to remain competitive and save jobs. (Reporting by Christoph Steitz, Writing by Miranda Murray, Editing by Rachel More).