Tesla Fosters Toxic Work Environment at German Plant, Union Says

Monica Raymunt

Wed, February 18, 2026 at 8:01 PM GMT+9 2 min read

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(Bloomberg) — Germany’s biggest union is accusing Tesla Inc. (TSLA) of fostering a toxic working environment at the carmaker’s factory near Berlin, as tensions mount ahead of a contested works council election.

The US manufacturer is overworking employees and putting pressure on staff that have fallen ill, IG Metall said Wednesday. The union applied for an injunction at a labor court over what it said were false allegations that one of its members recorded a works council meeting on a laptop. It asked prosecutors to investigate a local Tesla manager for defamation.

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Tesla’s management is attacking unions in Germany “with unprecedented aggression,” said Jan Otto, a regional IG Metall leader. “The company must not be allowed to get away with this.”

The comments showcase escalating friction ahead of a crucial works council election at Tesla’s German factory next month. IG Metall is hoping to win a majority at the vote to implement the kind of wage agreement that are standard in Europe’s biggest economy.

Tesla Chief Executive Officer Elon Musk has repeatedly expressed hostility toward unions and collective bargaining deals. In Germany, labor leaders typically hold half the seats on supervisory boards at major companies, handing them the ability to influence and block strategic decisions.

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Tesla didn’t immediately reply to a call for comment.

The vote at Tesla — and similar ones taking place in March at Mercedes-Benz Group AG, Porsche AG and Volkswagen AG — come at a tense time for Europe’s auto industry. Companies are shifting research and production to lower-cost countries while demand remains below pre-pandemic levels. The Germany industry has shed tens of thousands of jobs in the past years, leaving IG Metall grappling with broader questions about its relevance in a period of rapid change.

At Tesla, the situation is especially critical as the company’s European sales are slumping in a growing EV market. In Germany, where it produces the Model Y in the small town of Grünheide, new Tesla registrations plunged 48% in 2025. The company’s staff there have long complained about unfair working conditions.

IG Metall said it’s cooperating with an investigation into the laptop dispute, with the employee offering authorities access to the device to speed up the probe and refute the claim. The union is calling for changes at Grünheide including more personnel, more shift breaks and more flexible vacation time.

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“Employees are right to demand that they be treated with respect,” said Philipp Schwartz, an IG Metall member running in the Tesla works council election. “They no longer want to be looked down upon as if they were machines that can be replaced when they no longer function as desired.”

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