Tesla subsidiary at Tesla Grohmann is gearing up for a possible worker’s strike led by German labor union IG Metall, reports the Wall Street Journal. The potential strike comes at a time that could affect the start of production for the upcoming mass-market Model 3, which is slated to commence production later this year.
IG Metall, which also represents other major automotive manufacturers like Volkswagen and General Motors, threatened to organize a strike at Tesla Grohmann Automation over worker’s wages. In January earlier this year, Tesla acquired Grohmann, an industrial robotics manufacturer, for $150 million.
Tesla's Elon Musk gets a taste of the bare-knuckle world of German labor unions https://t.co/sOkQljLdwu
— WSJ Business News (@WSJbusiness) April 18, 2017
IG Metall has declined to comment on the situation, though it is said that many of the workers at the Grohmann factory are upset about their wages since the Tesla acquisition. Germany has extremely strict labor laws that protect worker rights and give a significant amount of authority to union interests. Tesla has replied in a statement saying “We continue to work directly with Tesla Grohmann employees and are prepared in the event there is an action initiated by the union.”
Production on the Model 3 is still a number of months away, but with Tesla’s track record with meeting deadlines, this news is not something that should be taken lightly. It is unknown what sort of backup effect a strike could cause, but with Model 3s preparing to go, let’s hope Tesla and IG Metall can come to an agreement!