Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

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

Published 06/02/2022, 09:44 AM
Updated 06/02/2022, 11:31 AM
© 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

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.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"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'.)

Latest comments

Can the entire operation there and see how fast they change their tough talk!! And Musk will do it out of principal.
don't worry.the right people will enjoy less unproductive team members.what a great move!
Sounds to me like 8000 future jobs leaving Deutschland before they get there.
"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
Can we please just consider building in Hungary and start getting out of Germany.
 You are buying the globalist line about Hungary.
I would prefer that we did not support Hungary and their nut job leader. But thanks.
 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.
move the plant to Hungary. they want to work.
I am assuming you are morally bankrupt and/or just a horrible human.
German Unions are no joke! They are the strongest in Europe!
And Musk will adjust to their policies and attitudes.  8k jobs that will never be created in Germany.
They're doing fine John, you worry about the Laissez-faire capitalism ***Americans over there.
Musk is wading into deep water in Germany.
Other companies pretend to support it but will just fire the unproductive, he’s giving them a warning.
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.
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.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.