Tesla has recently disclosed plans to implement pay increases for hourly workers at its battery factory in Sparks, Nevada. The company aims to raise wages by approximately 10%, with the adjustments set to take effect in early January 2024.
Internal documents obtained by CNBC, as well as feedback from workers at the facility, confirm Tesla’s proposal to introduce “cost of living adjustments.” This initiative will raise the starting hourly wage from $20 to $22, and the upper limit from $30.65 to $34.50. Additionally, the company will streamline various wage levels, meaning several workers who currently earn between $26.20 and $30.65 an hour will see their pay adjusted to $34.50 an hour.
These adjustments represent a significant pay raise of 10% or more for the majority of hourly workers, resulting in an increase of $2 to $8.30 per hour.
The implementation of these pay increases could potentially address workers’ concerns and help dissuade the formation of a union or the pursuit of a collective agreement in Nevada. As of now, Tesla has not responded to CNBC’s request for comment on the wage adjustments.
In similar developments within the automotive industry, the United Auto Workers (UAW) union successfully negotiated landmark contracts, after engaging in contentious discussions and labor strikes, with General Motors, Ford Motor, and Stellantis (Chrysler-parent) earlier this year. CNBC previously reported that UAW President Shawn Fain expressed intentions to extend their efforts from traditional automakers in Detroit to include Tesla, Toyota Motor, and other non-unionized automakers operating in the United States.
Late last month, a labor strike initially initiated by workers at Tesla service and collision repair centers in Sweden has since expanded to Denmark, Finland, and Norway, encompassing various roles related to shipping, waste management, and other services provided to Tesla. In response to Tesla’s refusal to engage in agreements with labor unions, one of Denmark’s major pension funds announced its decision to divest its holdings of Tesla stock.
Source (CNBC)
