Possible Strike Threatens Tesla Model 3 Production
Tesla’s scheduled start of production in July for the Model 3 could be in jeopardy.
And it’s largely beyond Tesla’s control.
Recently, Tesla acquired Grohman Engineering and then formed Tesla Advanced Automation Germany out of the deal. The plan was to secure an advanced engineering group in order to streamline/speed up the development and production process for the Model 3.
It sounded like an excellent idea, but now there’s trouble brewing.
As Germany’s Welt Am Sonntag reports, a worker strike at Tesla acquired Grohman is a real possibility. The strike could begin as early as this week.
Reasons for the strike include:
The 660 Tesla Grohmann employees are paid up to 30% below union rate
Tesla cancelled all non-Tesla order at Grohman, which is fueling fears over job security
Grohman’s founder has left the company within reason
Tesla has responded by offering to increase employee pay by some 150 euro per month, but this doesn’t provide wage parity with union rate. The union is asking for a wage increase of closer to 400 euro per month. Tesla is willing to increase compensation further through a TSLA stock program, but this too is being met with criticism from employees.
IG Metall is presenting the union. IG Metall rep Patrick Georg stated:
“We received an unsatisfactory response from the company. We’re going to check next week whether strikes are possible.”
Tesla issued this statement:
“We want to grow significantly in Prüm and understand that we have to pay competitive wages in order to achieve that. Everyone at Tesla Grohmann Automation is fair and competitive above the branch level.”
Any strike at this point, even one lasting just a few days, could seriously jeopardize the July start-of-production for the Model 3.
Watch this space for updates on this developing story.