Tesla Inc. employees in Germany are demanding better working conditions, putting pressure on the Elon Musk-led manufacturer that’s contending with a sales slump in Europe’s biggest auto market.

More than 3,000 workers at Tesla’s plant near Berlin have signed a petition asking for more breaks, better staffing and an end to management’s intimidation tactics, the IG Metall union said Thursday. Employees have long been overworked and will have to shoulder too much once Tesla ramps up output of the Model Y again after reworking assembly lines, unionists said.

“There often isn’t even time to drink or go to the toilet,” IG Metall members of Tesla’s works council said in a statement. “No one can keep going like this until they retire.”

Tesla’s reputation in Europe’s largest economy has deteriorated since Musk endorsed the right-wing AfD party during the German election campaign and became a top adviser to U.S. President Donald Trump. The company’s sales in the country plummeted 76% last month.

Discontent has swirled around Tesla’s lone car factory in Europe for years, with activists claiming that the site uses too much water and poses a threat to the environment. Tesla also had to contend with attacks on surrounding railway infrastructure. Last year, Musk said he was looking into high rates of absenteeism at the plant in the small town of Grünheide.

Unionists plan to hand over the petition to Tesla management during Thursday’s workers’ assembly. It’s unclear if it will succeed in changing conditions at the plant. IG Metall members form the largest single group on Tesla’s work’s council but do not have a majority. The factory employs around 10,500 people, according to union estimates.

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Managers often operate on a simple premise when it comes to hiring: get the best workers they can for the lowest salaries. 

But that kind of thinking prioritizes short term rewards over long-term gains, and could very well come back to haunt them, according to organizational psychologist Adam Grant. He argues that it’s actually in a boss’ best interest to pay more as a way to cultivate a happier and more stable workforce.  

“If you take a longer view, giving people a raise, and in particular, paying them well—some would even say paying them extremely generously—is an investment in motivation and retention,” Grant tells Fortune.

After the pandemic totally upended the jobs market and put bargaining power firmly in the hands of employees, the pendulum has now swung firmly back to employers. In August of 2022, job switchers earned pay increases of 8.4% compared to 5.6% for people who stayed in their roles, according to federal data. But that difference is now almost negligible. Job switchers received around a 4.8% pay increase in January and February of this year, compared to job stayers who came away with a 4.6% gain. 

The fact that employers have the upper hand again, however, should not be a greenlight to lowball workers with fewer attractive job prospects elsewhere, says Grant. “When organizations pay on the top end of the market range, they end up with unusual loyalty, because people know that they can’t easily replicate the salary that they’re getting elsewhere,” he says. 

Ultimately, he says, decent pay is another way to make sure that employees know the company values their contributions, and believes they’re worth investing in. 

“The power of raising someone’s salary lies in communicating to them: ‘Hey, you’re really important to us. We don’t want to lose you. We want to make sure that you can support your family and lead the lifestyle that you dream of,” he says. 

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• Nike CEO Elliott Hill said the iconic sports-and-sneakers retailer will refocus on appealing to China’s 1.3 billion consumers with a boost from investments in the country’s basketball, track and field, and football teams. Nike is also aiming to wow consumers with a forthcoming spring collection and its partnership with Kim Kardashian’s shapewear line in NikeSkims as it redoubles efforts to focus on product portfolios. 

Nike CEO Elliott Hill, who has less than six months on the job, asked Ohio State Buckeyes football coach Ryan Day how to stay on offense.  

Day told Hill the national championship team applies pressure constantly in all three phases of the game, no matter what team they’re playing against: Get vertical down the field on offense; play suffocating man-to-man coverage so no throw is easy; and, go after punts and have the best athletes returning kicks. For Hill, it describes precisely how he’s thinking about Nike’s strategy right now. 

“Success for Nike has never been about protecting our turf,” Hill said on Thursday. “We force others to play our game. We drive trends, grow markets, we lead.”

Still, right now Hill is weaving Nike through the hairpin curves of a harrowing turnaround. “It’s been a tough couple of years,” said Hill, and the difficulty has continued into 2025 and is expected to spread into 2026. 

The sneaker-and-sportswear chain saw third quarter revenues tumble 9% to $11.3 billion and net income down 32% compared to the prior year. As Hill said Thursday on a call with analysts, the company has committed to its new strategic path, but so far the early efforts haven’t been enough to offset the continued headwinds of its classic franchises. 

“While we met the expectations we set, we’re not satisfied with our overall results,” Hill said on Thursday during the earnings call. “We can and will be better.”

Nike tapped Hill last year to return and lead a turnaround at the company following his departure as an executive after 32 years. Hill’s strategic plan is called “Win Now” and involves five initiatives, three countries, and five cities. According to Hill, the initiatives involve focusing on building Nike’s hustle culture; sharpening the brand; expanding its offerings beyond the classics like Air Force Ones and Air Jordans; rebalancing its go-to market process and Nike Digital arm; and, focusing on local athletes with a more grassroots approach. 

Hill recounted some of the renewed steps Nike has taken in the past three months in doubling down on the brand. Philadelphia Eagles quarterback Jalen Hurts wore red-and-black Jordan cleats during the Super Bowl, where Nike debuted its first advertisement in 27 years. During the halftime show, musical performer Kendrick Lamar wore coach Deion Sanders retro sneakers, and tennis champion Serena Willias wore Chuck Taylors along with musician SZA—all three Nike brands. 

Hill added that Nike brands also “dominated” the NBA all-star weekend in the Bay Area, and said the “passion of sneaker culture” is alive and kicking. 

As for the three countries in the 5-5-3-5 strategic plan, Hill is eying the U.S., United Kingdom, and China as another source of renewed growth. The five key cities are New York, Los Angeles, London, Beijing, and Shanghai.

In the third quarter, revenue declined 15% in Greater China, said chief financial officer Matt Friend. But despite the challenge in the macro environment, sports are a growth area in China and the company is planning to pick up the pace. Nike leases an office complex in Shanghai, which is its headquarters for the Greater China geography. It also has a distribution facility in Taicang, China. Last year, the company’s China revenues increased 8% on a currency-neutral basis due to higher revenues in categories including Men’s, Women’s, the Jordan Brand, and Kids.

Hill said the company has made significant investments in major sports teams in China and now has a product creation arm called GEO Express Lane. One caveat is Hill said he noticed during a trip in December that the competition there was more aggressive than he remembered 4.5 years ago. 

“Good news is, we’re still the No. 1 brand there,” he said. “We’ve just got to accelerate our pace.”

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