Tesla Escalates Union Dispute with Criminal Complaint in Germany
In a significant escalation of tensions, electric vehicle giant Tesla has filed a criminal complaint against a member of Germany's powerful IG Metall trade union. According to an internal company memo obtained by Reuters, the Elon Musk-led automaker alleges that an external IG Metall representative attempted to secretly record a private works council meeting at Tesla's factory near Berlin.
Alleged Secret Recording Incident
The incident reportedly occurred earlier this week during a works council meeting convened to discuss issues affecting the approximately 11,000 employees at Tesla's German manufacturing facility. Company management stated in their memo to staff that the union representative, who was participating as a guest, was observed recording the gathering on their laptop.
The meeting was immediately halted, and the union member was excluded from further proceedings. Local police were called to the scene and confiscated the computer as evidence. Tesla management emphasized in their written communication to employees that the works council meeting was not a public event, and under German law, recording non-public statements without consent constitutes a criminal offense.
Union's Strong Rejection of Allegations
IG Metall has vehemently denied Tesla's accusations, describing the company's statement as a "calculated lie" in a response to Reuters. The union contends that this allegation represents a strategic maneuver by Tesla management ahead of crucial works council elections scheduled for March.
"Influencing elections with fabricated accusations reminds us of the tactics of authoritarian regimes," stated Jan Otto, regional IG Metall chief, in comments to the Financial Times. The union maintains that plant management is attempting to keep organized labor at bay in favor of what they characterize as a more compliant, non-unionized worker representation.
Broader Context of Union Tensions
This criminal complaint marks the latest development in ongoing friction between Tesla and organized labor in Germany. Tesla's Berlin-area factory remains the only major vehicle manufacturing plant in Germany where wages are not determined through a collective bargaining agreement with a trade union.
Despite receiving the most votes among employees in the 2024 works council elections, IG Metall failed to secure a majority. The workers' body is currently led by a coalition of independent groups. Gaining control of the works council would represent a critical step toward IG Metall's goal of negotiating a formal pay agreement for Tesla's German workforce.
Management's Stance and Competitive Concerns
Tesla's German management has consistently argued that a union-negotiated agreement on wages and working conditions would undermine the factory's competitiveness. This concern comes at a time when many German automakers are cutting jobs due to high production costs.
André Thierig, manager of Tesla's Germany factory, told the DPA press agency late last year that he could not imagine American decision-makers continuing to expand the German facility if elections resulted in an IG Metall majority. This statement underscores the high stakes involved in the upcoming works council vote.
Global Union Challenges and Market Pressures
The German dispute occurs alongside Tesla's ongoing conflicts with unions in Sweden, where the company has refused to sign a collective bargaining agreement with mechanics since 2023. In the United States, Tesla has faced numerous allegations of anti-union conduct.
These labor tensions coincide with significant market challenges for Tesla. The company recently lost its position as the world's top electric car manufacturer to Chinese rival BYD, with global sales declining 9% to 1.6 million vehicles. The European market proved particularly difficult, with Tesla sales plummeting 27% to 239,000 units in 2025 according to ACEA, the European automotive trade association.
Currently, Tesla's German factory produces approximately 5,000 vehicles weekly, equivalent to about 250,000 cars annually. The outcome of next month's works council elections and the resolution of this criminal complaint could significantly impact both labor relations and production stability at this crucial European manufacturing hub.
