Labor Dispute

Elon Musk vs. the Unions

Electric carmaker Tesla has had its wings clipped by unions in Germany. Source: Tesla [M]

Welcome to Germany, Elon Musk. This is not meant to be sarcastic. The founder of the electric carmaker Tesla is currently getting an intensive course in social market economics. After Tesla acquired automotive supplier Grohmann Engineering last fall, Mr. Musk traveled to the company’s headquarters in the far west of Germany. Addressing employees in the work cafeteria, he promised a bright future together.

But the works council and IG Metall, Germany’s most powerful union, want to talk about other things. They’re demanding collective wage agreements for Grohmann employees and worried about job stability, since the supplier is supposed to produce exclusively for Tesla from now on.

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