Tesla, Inc. is an American electric car manufacturer which employs over 140,000 workers across its global operations as of January 2024[update],[1] almost none of which are unionized. Tesla CEO Elon Musk has commented negatively on trade unions in relation to Tesla. Despite allegations of high injury rates, long hours, and below-industry pay, efforts to unionize the workforce have been largely unsuccessful. There are active labor disputes with Tesla in the United States, Germany and Sweden.
Tesla is the only major American auto manufacturer not represented by a union in the US. None of the unionization efforts in Fremont Factory and Gigafactory New York have been successful. In late 2023, United Auto Workers announced renewed efforts to unionize.
TM Sweden mechanics affiliated with IF Metall went on a historic strike on October 27, 2023, which expanded when other Swedish, Danish and Norwegian unions joined by initiating their own solidarity strikes. This is the longest strike in Sweden since the 1938 Saltsjöbaden Agreement.
Tesla acquired the formerly unionized NUMMI plant in Fremont, California in 2010, which became the Tesla Fremont Factory.[10][11] As of 2024, Tesla employs 70,000 workers across the United States, of which 20,000 work in the Fremont Factory.[6]
United Auto Workers (UAW) president Dennis Williams expressed their interest in unionizing the factory in May 2016, shortly after Tesla announced increased local annual production targets of 500,000 vehicles by 2018, which would have placed it in the top ten sellers of new vehicles within the US.[12] In the fall of 2016, Jose Moran, a Fremont Factory employee, contacted UAW, going public with a "Fair Future at Tesla" campaign in February 2017, citing high injury rates, long hours and below industry pay as motivations.[3][13] In October 2017, Tesla fired Richard Ortiz, who was involved with the organizing campaign, which the National Labor Relations Board (NLRB) later ruled to be illegal retaliation.[14]
Nothing stopping Tesla team at our car plant from voting union. Could do so tmrw if they wanted. But why pay union dues & give up stock options for nothing? Our safety record is 2X better than when plant was UAW & everybody already gets healthcare.
CEO Elon Musk published a tweet in May 2018,[15] that implied workers would lose stocks if they formed a union. Three years later, the NLRB ordered Musk to delete that tweet, and reinstate former employee Ortiz with full back pay.[16][17] Additionally Tesla would have to put up a notice in all of its US factories addressing the unlawful tweet.[18] Tesla appealed to the United States Court of Appeals for the Fifth Circuit, which affirmed the original NLRB order in 2023.[19][20]
Five years after the initial tweet, Musk invited UAW, via another tweet, to hold a union election at their convenience without retaliation.[21] UAW president Ray Curry responded that if Tesla was serious about supporting organizing, Tesla would acknowledge they broke the law when they fired Ortiz and Musk published the unlawful tweet.[22]
A CNBC report in 2022 found that Tesla paid public relations firm MikeWorldWide to monitor a Tesla employee Facebook group and to monitor Tesla union organizers on social media from 2017 to 2018. MikeWorldWide monitored social network discussions regarding alleged unfair labor practices at Tesla and a sexual harassment lawsuit. Former and current Tesla employees told CNBC that they believed the company continued to monitor its workers on social media as of 2022.[23]
The new UAW president Shawn Fain attributed previous unionizing failures to internal corruption, coziness with management and bad collective agreements in January 2024.[6] Several months prior, UAW won 30 to 160% salary increases at the "Big Three".[8] Afterwards, UAW launched organizing drives at 13 non-union auto manufacturers, including Tesla,[6] with an expanded organizing budget of US$40 million through 2026.[9] In contrast in 2017, UAW spent $422,000.[10][24]
Giga New York
Entrance to the Giga New York in 2018, months before first union effort here
Workers tasked with labeling data for Tesla Autopilot at Giga New York in Buffalo announced a unionization effort with Workers United in February 2023.[5] Workers United is affiliated to Service Employees International Union. Workers United led the successful drive at the first Starbucks to unionize, six miles away, also in Buffalo.[27][28][29] A day after the announcement, a set of complaints was lodged with the NLRB against Tesla regarding alleged retaliation of 18 employees involved with the Workers United campaign.[30][31] In November, the NLRB dismissed the illegal firing complaint, but found merit in the other complaints around workplace surveillance and captive audience meetings.[32]
Following allegations raised by Workers United, the NLRB regional director in Buffalo, New York filed a complaint with the national board in April 2024 alleging that Tesla had illegally implemented company policies to prevent workers at its Buffalo plant from unionizing, for example by implementing an acceptable use policy that restricted workplace organizing.[33]
Germany
Tesla is one of the few auto manufacturers in Germany that has not signed any individual company collective agreements nor is a member of the Employer Association in the Metal and Electronics Industry [de] as of 2024[update]. The Metal and Electronics Industry refers to the network of companies that negotiate with IG Metall in each region.[34]
Tesla acquired Grohmann Engineering (now Tesla Automation) in January 2017 and inherited the existing works council. IG Metall and the works council chair Uwe Herzig stated that wages as of April, post acquisition, at Tesla were 25‒30 percent below the equivalent of the regional collective agreements in the metal industry.[37] In October, management and the works council concluded a works agreement that matched employee salaries with the regional collective agreements without explicitly signing a union collective agreement. IG Metall pushed for formal ratification; however, IG Metall acknowledged that there were "good negotiation results" and credited the threat of strikes with pressuring Tesla to sign the works agreements.[38]
According to IG Metall, in October 2021, Tesla was offering employees at the new Gigafactory Berlin-Brandenburg (Giga Berlin), wages 20 percent below the collective agreement equivalent provided at other automotive facilities in Germany.[39][40]
Seven non-union employees of Giga Berlin initiated the works council election [de] process in November 2021. An employee is eligible to run as a works council candidate if they have at least six months tenure. Tesla eventually planned to hire 12,000 employees in total. In the first six months, Tesla hired 1,800 employees, mostly middle–management personnel. IG Metall expressed concern about the future works council being dominated by management, because only those with six months tenure would be eligible to run.[41][42] In March 2022, employees elected their first works council. Nearly half of the employee voted for the manager-friendly "Gigavoice" candidate list.[43]
IG Metall called for an investigation in January 2023, after workers reported they were being made to work longer hours, with less resting time between shifts. IG Metall also stated that workers were being forced to sign non-disclosure agreements and therefore were afraid of retribution if they openly discussed their working conditions.[44][45]
Giga Berlin's initial workforce of 1,800 employees doubled quickly enough to trigger a rule requiring another works council election two years after the first one, instead of the usual four years.[41] The second works council election was scheduled initially for March 18-20, 2024. IG Metall petitioned the Frankfurt (Oder) Labor Court [de] to file a preliminary injunction against the electoral board’s proposed timeline. The original timeline set a deadline to submit candidate nominations lists by February 15. Given that Tesla factory production was suspended earlier for a month until February 11, due to supply chain disruptions by the Houthi militia in the Red Sea, this would have left each candidate list with only several work days to collect the mandatory 50 signatures from coworkers.[46] The Frankfurt (Oder) Labor Court granted IG Metall's petition, however the electoral board and Tesla appealed to the Berlin-Brandenburg State Labor Court [de], which overruled the lower court, keeping the original election timeline.[47]
The election concluded on March 20, with 234 candidates from nine lists.[47] With 39% of the vote the "IG Metall Tesla Workers GFBB" list won the plurality of seats, with 16 out of 39. The remaining 23 seats were split among four non-union affiliated lists, 15 seats for "Giga United", 5 seats for "One Team", 2 seats for "Giga Fair" and 1 seat for "Giga für Alle" (Giga for all).[48] Michaela Schmitz, the current works council chair, is vocally anti-union. During the last days of works council election, Schmitz ended a rally speech with "We do not need a union!" (German: Was wir nicht brauchen, ist eine Gewerkschaft!).[49] On April 4, Schmitz was re-elected as the works council chair for a second term. Schmitz comes from the "Giga United" list, which is composed mostly of managers.[50] In total, 8,917 Tesla workers voted,[48] out of 12,500 who were eligible.[50]
Sweden
Mechanics affiliated with IF Metall, a Swedish trade union, initiated a strike on October 27, 2023, against TM Sweden, a Tesla vehicle service subsidiary, over the company's refusal to sign a collective agreement.[51] The ongoing strike is the longest ever in Sweden within the past 80 years. Strikes are very rare under the "Swedish model" of social partnership, which was codified in the 1938 Saltsjöbaden Agreement that remains in effect to this day.[52]
TM Sweden employs 130 employees in Sweden, about half of whom are IF Metal members.[52] The strike, initially affecting mechanics at ten workshops servicing Tesla vehicles, later expanded to include other facilities servicing various car brands. While workers continued with regular tasks, they refrained from servicing Tesla vehicles during the strike.[53]Strikebreakers arrived at Tesla service centers, prompting concerns among the strikers about their impact on the labor dispute.[54][52] Strikers were banned from the company premises. According to union leader Gabriel Kuhn, individual strikers were contacted by Tesla after the company found social media posts made by the strikers' families, which also hampered non-union participation in the strike.[52] The Swedish National Mediation Office [sv] statistics showed that one-third of the 130 mechanics participated in the original Sweden strikes.[55] Non-union members and even some IF Metal union members did not participate in the strikes.[52]
The strike led to the pension fund PensionDanmark [da] divesting its Tesla shares in protest. In response to the escalations, Tesla posted a job opening for a Swedish government affairs specialist with "significant experience with Nordic legislative and regulatory advocacy", presumably to help with lobbying efforts.[63] In September 2024, a foreign delegation of Ford Germany works council members and IG Metall deputies joined the Tesla service center picket line in Malmö, Sweden as the strike continued more than 10 months.[64]
^McFerran, Lauren; Emanuel, William J.; Ring, John F. (March 25, 2021). Tesla, Inc. and Michael Sanchez, Jonathan Galescu, Richard Ortiz and International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, AFL–CIO (decision and order). Decisions of the NLRB. National Labor Relations Board. pp. 9, 10. Archived from the original on December 24, 2021. Retrieved January 6, 2022. General Counsel argues that to remedy fully CEO Musk's unlawful May 20, 2018 tweet, which coercively threatened that employees would lose their stock options if they selected the Union as their representative, the Board should order the Respondent to have Musk delete that tweet and to post a notice addressing that violation at its facilities nationwide. … (f) Direct its agent and supervisor, CEO Elon Musk, to delete his May 20, 2018 statement
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