Tesla Throws Cash At German Supplier To Calm Union Unrest

Following concerns that a key German supplier for Tesla could go on

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by Brad Anderson

April 28, 2017 at 14:56

Following concerns that a key German supplier for Tesla could go on strike and potentially delay the arrival of the Model 3, the electric automaker has offered pay rises and job guarantees for the disgruntled workforce.

Grohmann Engineering was purchased by Tesla last year and formed Tesla Advanced Automation Germany but despite its relationship with Tesla HQ, German trade union IG Metall has cried out for pay rises.

After Easter, Reuters reports that Tesla offered workers at Grohmann a pledge to guarantee jobs for five years, a one-off 1,000 euro payment ($1,089) and stock options. Additionally, the carmaker offered 10,000 euros in stock options for four years prior to Easter and according to IG Metall, these conditions have significant reduced the likelihood of a worker’s strike.

However, the union is still demanding improved pay and a collective wage bargaining contract.

Late last month, the head of Grohmann, Klaus Grohmann, was ousted from the company over a clash with Elon Musk about the strategy of the German company.

It is reported that Grohmann disagreed with Musk’s demands for the company to focus on Tesla projects at the detriment of legacy clients of Grohmann Engineering, including Daimler and BMW.