IG Metall and Tesla gear up for a battle over contracts at Gigafactory Berlin.
The union, which represents metalworkers in the auto industry, among other sectors, negotiates industry-wide contracts.
In Germany, every car company is part of a single employers association, and IG Metall then negotiates with this single entity. This system allows workers to have a better bargaining position than the US system of a plant by plant negotiation.
However, Tesla, which is new to the German market, does not plan to join the association. Membership is customary and is not required by law
The German market has not been an easy one to negotiate for Tesla, and both sides have a lot to fight for in this battle.
For IG Metall, failure to lock in Tesla could mean a loss in bargaining power with other automakers. This is important as many automakers are pivoting to EVs, including VW, BMW, and Mercedes, requiring 30% fewer workers.
For Tesla, they to get the factory up and running to feed demand. The factory would produce 500,000 cars per year and its next-generation 4680 battery cell.
There is more to come with this story, and we will keep you updated as things progress.
Source: Business Insider
