Union loses fight against Tesla at German factory

The works council, an elected body of employees that negotiates pay deals and working hours with management, has long been an unshakeable component of German corporate life, especially in the auto sector.

At Tesla's "Gigafactory" outside Berlin, the IG Metall union was seeking to win a majority in the council at elections this week, as they fight back against what they claim are poor working conditions at the site.

But the union came in second place, according to results released late Wednesday, behind the management-aligned "Giga United" list.

IG Metall official Jan Otto accused electric carmaker Tesla and its US owner Elon Musk of putting undue pressure on employees.

"It was made very clear that supporting IG Metall, or indeed any trade union, can only lead to disadvantages within the company," Otto said.

"It's clear that (Musk) has here used the power of capitalism and of money to hollow out democracy," he added.

"We should ask whether what has happened here should be acceptable in a country like Germany, whether management should be allowed to campaign so hard for a list."

AFP has contacted Tesla Germany for comment.

The union and Musk have clashed repeatedly since Tesla opened the factory in Gruenheide outside Berlin in 2022.

The union has accused the carmaker of poor working conditions, withholding sick pay and covert redundancies, all enabled by the lack of a collective agreement to protect workers.

IG Metall and Tesla are now locked in legal disputes after factory manager Andre Thierig last month accused a union representative of secretly recording a works council meeting.

This prompted a police investigation and the seizure of the union official's laptop.

IG Metall said in response it would sue Thierig for defamation and prepare a further case concerning alleged union-busting.

The dispute has been another headache in Europe, where sales have been hit amid strong Chinese competition.

In Germany there has also been a backlash against the electric car pioneer after Musk strongly supported the far-right Alternative for Germany (AfD) party.