Tesla to give permanent jobs to 500 people

Tesla on Thursday said it would give permanent jobs from Nov. 1 to 500 temporary workers at its German gigafactory near Berlin, in what the U.S. electric carmaker called an “optimistic assessment of the further development of e-car production”.

Gruenheide, Tesla’s only European gigafactory, employs around 12,000 staff. Tesla said that at the last staff meeting, works council head Michaela Schmitz had called on management to cut temporary work and bring more staffers into permanent employment.

Earlier this year, Tesla pared back staffing there with voluntary staff reductions. It also did not extend contracts for some subcontractor workers, as part of a group-wide effort to cut costs.

A month ago, German automaker Volkswagen VOWG_p.DE said it was considering shutting local factories and reducing staff.

“At a time when many companies are talking about job cuts and plant closures, the news that a further 500 people will be offered a long-term perspective at Tesla in a permanent position is particularly pleasing,” Tesla said.

Tesla said this request had been thoroughly reviewed by the plant’s management, adding German union IG Metall, which has long criticised working conditions at Gruenheide, had not been involved in these deliberations.

Tesla did not disclose how many temporary workers are employed at Gruenheide.

About the Tesla facility at Grünheide

Tesla’s German Gigafactory, located in Grünheide, Brandenburg, Germany, was announced in November 2019. The facility represents a $5 billion investment and is designed to produce 500,000 vehicles annually, primarily Model Y, for the European market. The factory aims to employ 12,000 workers and integrate sustainable manufacturing processes, solar-powered energy generation, and on-site battery production.

The project faced challenges, including environmental concerns, water supply issues, local opposition, and regulatory hurdles. Despite these obstacles, Tesla secured necessary permits and began production in March 2022. Gigafactory Berlin supports Germany’s climate goals and electric vehicle adoption, stimulating the local economy and creating jobs.

As of 2023, the factory has started production, expanded production lines, and continues to ramp up capacity. Tesla’s German Gigafactory enhances the company’s global manufacturing footprint and strengthens its European presence. Sources: Tesla’s official website, Reuters, Bloomberg, CNBC, and CleanTechnica.