Tesla under fire: Sick leave dispute heats up at German plant
At Tesla's Grünheide factory, a dispute over employee absenteeism has escalated. The American electric car manufacturer sends letters to workers on sick leave and withholding salary payments. Tesla argues that the issue is minimal in scope.
Elon Musk's company faces a high level of absenteeism at its German facility in Grünheide. According to the German daily Handelsblatt, Tesla is withholding pay from employees on sick leave and requiring them to disclose their medical diagnoses. Additionally, the company is asking workers to release doctors from their confidentiality obligations.
Tesla questions sick leave
Tesla is sending letters to employees titled "Doubts Regarding Submitted Certificates of Incapacity for Work." In these communications, the company states it will immediately suspend payments for sick leave and threatens to demand reimbursement of already paid amounts.
The American electric car manufacturer is pressuring its employees to disclose details of their medical conditions for "every confirmed sick leave." Furthermore, the company demands that employees allow their doctors to break confidentiality.
Previous reports by "Handelsblatt" suggest that Tesla's management in Germany has taken other unusual actions—company representatives reportedly made unannounced visits to employees' homes while they were on sick leave.
Tesla's actions regarding employees on sick leave raise questions about compliance with German labor laws, which traditionally offer strong protection for employees, especially concerning health issues, notes "Handelsblatt."
Tesla: the scale of the problem is minimal
The labor union IG Metall has confirmed the allegations against Tesla regarding withholding salary payments from sick employees. According to the union spokesperson, sick leave employees "often received not a single euro."
Tesla denies the allegations, stating that the problem affects only "about a dozen cases per month" out of its 11,000-person workforce. The company labeled the union's actions "populist scandal-mongering" and "a deliberate distortion of reality."
Tesla's challenges
Issues at the Grünheide factory are part of Tesla's broader challenges. The company recently experienced a significant drop in new vehicle registrations in China, a crucial market for it.
Simultaneously, Elon Musk's company's stock market value has drastically decreased in recent weeks, losing hundreds of billions in market capitalization. In Europe, Tesla is also encountering difficulties as the brand's sales have notably declined despite a general increase in electric car registrations.
The German factory in Grünheide, opened in 2022, is Tesla's first European production facility and plays a key role in the company's strategy for the continent.