Tesla raises wages 4% for German workers amid union pressure, WSJ reports

Tesla's management in Germany late last week informed 11,000 workers they will receive a 4 per cent wage raise effective in November, The Wall Street Journal reported on Sunday, where unions have previously said they earn below the industry average.

The U.S. electric maker will also pay a 1,500 euro ($1,609) bonus in December to offset inflation and from February raise annual wages by an additional 2,500 euros for the German workers, the people familiar with the matter told to Journal.

In October, Tesla said it would inform its staff this month of the level of the pay rise, adding it raised wages by 6 per cent last year.

German union IG Metall has previously said that Tesla wages were around 20 per cent below those offered under the collective bargaining agreement.

During a visit to the country, CEO Elon Musk also promised that the company will produce its new next-generation electric car at the German factory after a planned expansion next year, WSJ reported

The EV maker, unlike other carmakers in Germany, does not have a collective bargaining agreement governing wages.

Tesla and IG Metall did not immediately respond to Reuters' request for comment.