Tesla is facing another legal battle in Germany after the country’s largest union moved to challenge the results of the recent works council election at the company’s Gigafactory near Berlin, escalating tensions between management and organized labour in one of Europe’s most important auto markets.
The union, IG Metall, confirmed it has filed a lawsuit with the Frankfurt (Oder) Labour Court, seeking to have the election declared invalid. The move follows a contentious vote earlier this month at Giga Berlin, where a management-aligned group secured the largest share of support, dealing a significant setback to the union.
Works councils play a key role in German industry, acting as elected employee bodies that negotiate wages, working conditions, and hours with employers. At Tesla’s factory, the election outcome saw the “Giga United” list—led by incumbent chair Michaela Schmitz—win roughly 41% of the vote, ahead of IG Metall’s affiliated group, which captured about 31%, a significant dip from its previous share.
However, IG Metall alleges the results were not achieved fairly. The union claims Tesla management improperly influenced the election through intimidation tactics and unequal treatment of candidates. According to the filing, employees were led to believe that supporting the union could negatively impact the factory’s future and even their own job security.
“The impression that the election at Tesla was influenced by threats is too serious to leave unchallenged in court,” said Christiane Benner, the union’s first chair. “Democratic principles must apply to these important democratic elections in this country.”
The dispute is the latest chapter in a long-running conflict between Tesla and IG Metall, which has been pushing for a collective bargaining agreement at the plant since it first opened in 2022. The union argues that industry-standard protections—such as structured pay scales, shift premiums, and a 35-hour work week—should apply at the factory.
Tesla, however, has maintained a different approach, with wages negotiated individually rather than through a sector-wide agreement.
Allegations surrounding the election extend beyond campaign messaging. IG Metall claims supervisors promoted anti-union messaging, including distributing badges reading “Giga Yes, Union No,” and that pro-management groups were given preferential access to advertising space at the factory.
The union also points to public comments from Elon Musk suggesting the plant’s future expansion could depend on the election outcome.
In a separate controversy ahead of the vote, Tesla management accused an IG Metall representative of secretly recording a works council meeting—claims that were later found to be unsubstantiated after investigators reportedly discovered no such recording.
If the court sides with IG Metall, the current works council could be dissolved, forcing a new election.
