Tesla Gives Some Model 3 Workers Increased Wages, Job Security
Tesla has officially agreed to a deal with workers at Tesla Grohmann Automation.
As we previously reported, Tesla acquired Germany-based Grohmann Engineering in order to up its automation game and help with the Model 3 production ramp. Not long after the buyout, there were issues between Tesla, Grohmann founder Klaus Grohmann, and the company’s existing clients, which included BMW, VW, and Daimler. Since then, Klaus has retired (or been forced out), and Tesla has dropped all of the company’s prior contracts. Needless to say, the situation has grown quite messy.
Upon Klaus’ sudden retirement, workers were concerned about their future with the newly acquired company. Germany’s largest worker union, IG Metall got involved and threatened a strike.
Tesla immediately offered incentive packages to workers, in an attempt to curtail any major disputes that could have jeopardized the Model 3 launch and production. The initial offerings included stock options, one-time bonuses, and guaranteed employment for the next five years.
Now, some time has passed since the initial issues, and Tesla has taken the process a step further. The automaker has set up a new salary structure, which points to a 30 percent net compensation increase overall beginning this month. Workers will see an additional 150 euros in their monthly paycheck, as well as a bonus of 1,000 euros, and the equivalent of 10,000 euros in new stock options. The workers also have peace of mind to know that their jobs are secure until 2022. According to WELT (German publication), Tesla Grohmann’s Uwe Herzig said of the deal:
“We have developed our own remuneration structure in very pragmatic discussion.”