Tesla is giving staff at its Berlin Gigafactory a raise, report says, as the auto industry battles growing worker discontent

Tesla announced a 4% pay rise for the 11,000 workers at its Berlin Gigafactory as Elon Musk visited on Friday, as it faces tensions with unions.

• Tesla is giving 11,000 staff at its Berlin Gigafactory a 4% pay rise, per the WSJ.
• It comes as Germany's largest union is trying to organize at the plant.
• Tesla workers in Sweden are already on strike, while the UAW wants to recruit members.

Tesla is giving workers at its Berlin Gigafactory a pay rise as unions eye the EV manufacturer, The Wall Street Journal reported.

According to The Journal, executives told the plant's 11,000 staff they would receive a 4% pay increase effective this month.

The announcement was made on Friday during Elon Musk's visit to the factory on his way back from the AI Safety Summit in the UK, where he was interviewed by British Prime Minister Rishi Sunak.

The Journal reports that the pay package includes a bonus of 1,500 euros ($1,613) in December, to help offset inflation. And starting in February, those working in production will receive a further raise of 2,500 euros ($2,688) annually.

Musk's visit also saw him announce that the Berlin factory would build a car costing just 25,000 euros ($26,867), according to Reuters. That would be a major milestone in the company's goal to increase the affordability of its cars.

But the pay rise also comes at a shaky time for Tesla management.

Tesla staff in Sweden have been on strike since October 27 after the company resisted a collective agreement with its workers — something which is common in the country. And dockworkers in Sweden have threatened to block Teslas being loaded in four ports if it doesn't reach an agreement.

Tesla's leadership is also facing tensions in Berlin, with Germany's largest union, IG Metall saying staff are joining in droves.

Last month, IG Metall said union signups from Tesla workers had surged, and accused the company of failing to follow health and safety protocol.

While in the US, the United Auto Workers has Tesla in its sights after a major victory over the Detroit Three: Ford, Stellantis, and General Motors.

"Workers at Tesla, Toyota, Honda, and others are not the enemy — they're the UAW members of the future," said UAW President Shawn Fain, per CNBC.

Tesla did not immediately respond to Insider's request for comment.