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'Nein danke': Musk's office ultimatum faces pushback in Germany

Published Jun 02, 2022 09:44AM ET Updated Jun 02, 2022 11:31AM ET
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2/2 © Reuters. FILE PHOTO: Elon Musk attends the opening ceremony of the new Tesla Gigafactory for electric cars in Gruenheide, Germany, March 22, 2022. Patrick Pleul/Pool via REUTERS 2/2
 
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BERLIN (Reuters) - Elon Musk’s demand that Tesla (NASDAQ:TSLA) staff stop "phoning it in" and get back to the office got short shrift from Germany’s largest trade union on Thursday.

The Tesla chief executive waded into the future of work debate by telling staff at the electric carmaker that they must return to the office for at least 40 hours a week or leave the company, according to an email seen by Reuters.

The IG Metall union in Berlin-Brandenburg-Sachsen, where Tesla's plant is located, said it would support any employee who opposed Musk’s ultimatum. Tesla employs around 4,000 people in Germany and plans to expand the workforce to 12,000.

"Whoever does not agree with such one-sided demands and wants to stand against them has the power of unions behind them in Germany, as per law," Birgit Dietze, the district leader for IG Metall in Berlin-Brandenburg-Sachsen, said.

Employees at Tesla's plant in Gruenheide, Germany, elected 19 people to its first workers' council in February, setting the plant apart from others run by the carmaker in the United States and elsewhere without union representation, which Musk has fiercely resisted.

Some of the workers are part of IG Metall which represents workers across automotive companies and other industrial sectors.

In Germany there are currently no laws enshrining a right to work from home but the labour ministry is working on policies that would increase flexibility for workers. Many large employers, including automakers, have already embraced hybrid working models in the wake of the coronavirus pandemic which forced companies to send staff home to work.

"We have a fundamentally different view on creating an attractive working environment, and stand for empowerment and personal responsibility in our teams to balance the ratio of mobile and in-person work," said Gunnar Kilian, Volkswagen (ETR:VOWG_p) board member responsible for human resources.

Luxury carmakers BMW and Mercedes-Benz echoed that view when asked about Musk's ultimatum.

"Hybrid working is the working model of the future... different forms are possible, from complete presence to predominantly remote working," a Mercedes-Benz spokesperson said.

Musk, who has helped shift the traditional car sector to an all-electric future making himself the world’s richest man in the process, had blunt words for companies that didn’t require staff to be back in the office full-time.

"There are of course companies that don't require this, but when was the last time they shipped a great new product? It's been a while," Musk wrote in the email.

(The story corrects IG Metall district name in paras 3 and 4 from 'German state of Brandenburg Sachsen' to 'Berlin-Brandenburg-Sachsen'.)

'Nein danke': Musk's office ultimatum faces pushback in Germany
 

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Comments (9)
Bill Pulak
Bill Pulak Jun 02, 2022 5:54PM ET
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Can the entire operation there and see how fast they change their tough talk!! And Musk will do it out of principal.
Mighty Mario
Mighty Mario Jun 02, 2022 12:12PM ET
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don't worry.the right people will enjoy less unproductive team members.what a great move!
John Lynch
John Lynch Jun 02, 2022 12:03PM ET
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Sounds to me like 8000 future jobs leaving Deutschland before they get there.
Tre Hsi
Tre Hsi Jun 02, 2022 11:54AM ET
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"Tesla employs around 4,000 people in Germany and plans to expand the workforce to 12,000."  -- may have to rethink that target after the Musk memo
Wayne Potts
Wayne Potts Jun 02, 2022 11:36AM ET
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Can we please just consider building in Hungary and start getting out of Germany.
Chris Cummins
Chris Cummins Jun 02, 2022 11:36AM ET
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Nope, not willing to support that kind of leadership. I am betting you are Russian and hoping to stir the pot. Go home troll.
John Lynch
John Lynch Jun 02, 2022 11:36AM ET
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Chris Cummins  You are buying the globalist line about Hungary.
Chris Cummins
Chris Cummins Jun 02, 2022 11:36AM ET
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I would prefer that we did not support Hungary and their nut job leader. But thanks.
Chris Cummins
Chris Cummins Jun 02, 2022 11:36AM ET
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John Lynch  Thanks for your comment....but have you ever been to Hungary? Or even the EU? I am very confident in my stance and can back it up. Again, thanks for playing.
shady banner
shady banner Jun 02, 2022 10:19AM ET
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move the plant to Hungary. they want to work.
Chris Cummins
Chris Cummins Jun 02, 2022 10:19AM ET
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I am assuming you are morally bankrupt and/or just a horrible human.
Aris Deltona
Aris Deltona Jun 02, 2022 10:18AM ET
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German Unions are no joke! They are the strongest in Europe!
John Lynch
John Lynch Jun 02, 2022 10:18AM ET
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And Musk will adjust to their policies and attitudes.  8k jobs that will never be created in Germany.
G D
G D Jun 02, 2022 10:18AM ET
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They're doing fine John, you worry about the Laissez-faire capitalism ***Americans over there.
Benjamin USA
Benjamin USA Jun 02, 2022 10:00AM ET
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Musk is wading into deep water in Germany.
Roger Miller
Roger Miller Jun 02, 2022 9:53AM ET
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Other companies pretend to support it but will just fire the unproductive, he’s giving them a warning.
Benjamin USA
Benjamin USA Jun 02, 2022 9:53AM ET
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You don’t know how Germany works lmao. Their unions are smart and effective and work with the business. Musk is wading into a frivilous conflict with the Germans for no reason.
Lucas P
Lucas P Jun 02, 2022 9:53AM ET
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It's his fundamental position he's expressed before about the harm lazy people are doing to the health of a nation. That's an international perspective, not one focused on Germany. Is it any wonder German products from Leica to Mercedes are only attainable by the rich. Buyers find the fund the German social safety net.
 
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