Worker Strike At German Tesla Subsidiary Could Delay Model 3

Posted: Apr 16 2017, 6:00am CDT | by , Updated: Apr 16 2017, 1:26pm CDT, in News | Cars & Vehicles

Worker Strike at German Tesla Subsidiary Could Delay Model 3
Photo Credit: Getty Images

Elon Musk gets a taste of German Trade Unions.

Tesla could face a strike at its new German subsidiary. Tesla acquired Grohmann, a specialized machine manufacturer, a couple months ago. Now the German Trade Union IG Metall says that they are exploring a worker strike at Tesla Grohmann. The machines built at Tesla Grohmann are used to manufacture the Model 3. The Model 3 production start in July could face a delay if there is indeed a worker strike.

The 660 Tesla Grohmann employees are paid 25 to 30% less than the union rate. Tesla offers to pay each employee 150 Euro per month more, but that does not satisfy IG Metall. Tesla also offered to increase compensationthrough a Tesla stock program. This will be a tough sell as German workers are not used to this kind of compensation.

The trade union is exploring the possibility of a strike at Tesla Grohmann next week, IG Metall Trier speaker Patrick Georg told the German Welt am Sonntag newspaper.

Tesla has cancelled all outside contracts of Grohmann. This move as fueled the labor dispute as employees fear about their jobs. Tesla says though that it plans to grow Tesla Grohmann, but the focus is on its own needs for machines to make electric cars. Another factor for the increased insecurity of the Grohmann workers is the sudden departure of the founder.

Tesla paid about $150 million for Grohmann, according to released financial documents.

The Tesla Model 3 is already later than planned. Another delay would give the competition more time to counter the looming flooding of the electric car market with the affordable Model 3. Elon Musk confirmed last week that the final production version of the Model 3 will be unveiled in July.

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<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Manfred "Luigi" Lugmayr () is the founding Chief Editor of I4U News and brings over 25 years experience in the technology field to the ever evolving and exciting world of gadgets, tech and online shopping. He started I4U News back in 2000 and evolved it into vibrant technology news and tech and toy shopping hub.
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