Photo credit: @gigafactory_4/Twitter
Tesla will create thousands of jobs at its first European plant -- Gigafactory Berlin -- and will transform the entire region, making it one of the premier economic centers of Germany. The Brandenburg area suffers from a lack of jobs and Tesla is sure to solve this problem.
The California-based company offers very favorable working conditions for everyone, from long-term employees to highly skilled professionals. The salary starts at 2,700 euros per month, which is higher than the regional average.
However, a union, IG Metall, came into the picture. At the center of the conflict is Tesla's refusal to sign collective wage agreements. The American company offers its employees attractive salaries to unite in achieving the main goal: accelerating the world's transition to sustainable energy. If Tesla manages to satisfy its employees, which is likely to happen, it will jeopardize IG Metall's goals and undermine its credibility.
However, Tesla's factory is being built and will create thousands of jobs, while automakers across the country continue to cut their workforce. At the same time, more flexible terms of employment and remuneration in existing factories of German manufacturers could possibly prevent mass layoffs. In fact, a successful rivalry between Tesla and the union can be a salvation for automakers, because the old model with unions has already exhausted itself.
“Our corporate culture tends to keep things the way they’ve always been,” says Ferdinand Dudenhöffer, director of automotive research at the University of Duisburg-Essen. "Musk is someone who can break that open, and that is the major opportunity here -- also for the German carmakers."
Practice shows that trade unions are harmful because they act as monopolies. Union members can demand higher wages and work less. Threatening to stop working if companies do not pay employees more, unions are forcing companies to lay off some workers.
And the bottom line is that trade unions are harmful not only to companies but also to workers. They turn workers against employers, consumers, shareholders, and other workers, focusing only on a select group of workers. As a result, everyone loses, both companies and employees.
© 2020, Eva Fox. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.