Tesla’s Model 3 launch likely to be in a disarray, America’s energy giant might bear the brunt of Germany’s Union strike
Category: #world  By Saipriya Iyer  Date: 2017-04-20
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Tesla’s Model 3 launch likely to be in a disarray, America’s energy giant might bear the brunt of Germany’s Union strike

Tesla, the world-renowned energy and automobile magnate, may have to face Germany’s industrial Union strike preceding the launch of Model 3, the company’s first electric car to be introduced to the mass market.

The end of 2016 saw Tesla, Inc., a global leader in solar panel market and energy storage industry, acquiring Grohmann Group, a German automation design firm for a valuation of close to USD 150 million. The deal aimed to speed up the company’s overall production capacity. As per reliable sources, Tesla, Inc., plans to increase its capacity to 500,000 automobiles embedded with automation controls, annually. More than 1,000 German workers were promised to be put on the job at Grohmann’s company site, in addition to the 700 that were already employed.

Tesla’s latest innovation, the Model 3, is an electric sedan valued at USD 35,000, that will reportedly elevate the company’s profit margins to a considerable pinnacle, thereby giving the company an edge over its rivals. Successfully integrated with high-tech automation, Model 3 is projected to push Tesla into the super league, providing a stiff competition to General Motors, one of the key leaders in global automotive industry, say experts.

With a view to focus solely on the production of Model 3, Tesla reportedly eliminated some of Grohmann Group’s clients, a step which led to typical unrest and insecurity among the existing workforce. In a bid to secure their jobs, the current employees apparently decided to call upon IG Metall, Germany’s industrial trade Union, with an aim to negotiate a wage deal with the energy and automobile giant.

The workers at the German robotics subsidiary are reportedly demanding a salary of EUR 400 from per month their current salary of EUR 150 per month– a striking hike of more than 200 EUR. Tesla has however declared that it pays the workers 30% below Union salary after taking over the German automation firm, keeping in line with Tesla’s policy changes post the acquisition. Additionally, Tesla’s executives have stated every employee will own Tesla shares worth EUR 10,000 worth over the span of the next four years, apart from the EUR 1,000 incentive that has already been provided to the employees.

Tesla is confident that IG Metall’s strike will have no major impact on the company, for the simple reason that no injustice of any kind has been meted out to the employees. In fact, some reports claim that more than 100 employees have even signed a petition against the Union, condemning its decision over the wage contract.

Sources state that the issue is likely to be resolved soon. Nonetheless, neither the Union nor Tesla’s executives have actually confirmed that the launch of Model 3 will be disrupted, which seems to be a positive indicator for the company’s reputation. Model 3, incidentally, is set for a July launch, affirm reports.



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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