In a recent development, a German labour court has ruled against Tesla, finding that the electric vehicle (EV) maker’s works council violated union election rules. This incident marks another clash between Tesla and German regulations, adding to the ongoing challenges faced by the company.
Two years ago, unions praised Tesla employees for forming a works council as the company initiated the construction of its plant near Berlin. However, concerns were raised about the council becoming top-heavy, with only middle and senior management being part of it.
The works council called for a new election this month, with a request for candidates to be nominated by Feb. 15. Nevertheless, the labour court deemed this timeline in violation of German regulations, which require a two-year gap between election campaigns. As per the court’s decision, Tesla must wait until Feb. 29 to proceed with its election plans, considering the previous election started on Feb. 28, 2022.
Elon Musk, Tesla’s CEO, has been vocal about his criticism of German bureaucracy, citing conflicts with the urgency of addressing climate change. Musk has also faced disputes with unions, notably in the United States, where multiple cases involving federal labor law are ongoing.
While works councils are not mandatory in Germany, they are common in industrial firms and wield significant influence at competitors like Volkswagen. At Volkswagen, the head of the works council holds a seat on the supervisory board.
Tesla’s workforce in Germany has grown substantially from around 2,000 to over 12,000 since the previous election. Any full-time worker at the plant for at least six months is eligible to stand for election, requiring 50 backers for nomination.
As of now, Tesla has not responded to inquiries regarding whether it will accept the court’s decision or if the works council intends to appeal. The situation highlights the ongoing complexities Tesla faces in navigating union relations and regulatory challenges in Germany.
