A security gate outside the Tesla Motors Gigafactory site east of Reno, Nevada.
David Calvert | The Washington Post | Getty Images
Tesla has told workers at its battery factory in Sparks, Nevada, that some hourly rate workers there will see a pay increase of about 10% starting in early January 2024.
According to internal materials seen by CNBC, and workers at the factory who were notified of “cost of living adjustments,” Tesla will raise hourly workers from $20 to $22 an hour on the low end, and from $30.65 to $34.50 an hour on the low end. High end. It also simplifies some tiers, adjusting several tiers of workers who earn between $26.20 and $30.65 an hour today to $34.50 an hour, for example.
The adjustments also represent a raise of 10% or more for most hourly workers, adding anywhere from $2 to $8.30 per hour to their pay.
Wage increases could help Tesla fend off workers’ interest in forming a union and pushing for a collective agreement in Nevada. Tesla did not immediately respond to a request for comment on the increases.
The UAW won record contracts after contentious negotiations and U.S. labor strikes with General Motors, Ford Motor Co. and Stellantis, Chrysler’s parent company, earlier this year. As CNBC previously reported, UAW President Sean Fine has repeatedly said he plans to take this fight from Detroit automakers to Tesla, Toyota Motor and other non-union automakers operating in the United States.
In late October, workers at Tesla’s collision repair and service centers in Sweden began a labor strike that has now spread to Denmark, Finland and Norway and includes workers involved in charging, waste management and providing other services for Tesla. In recent weeks, one of Denmark’s largest pension funds announced that it would sell its holdings of Tesla shares due to the American giant’s refusal to enter into agreements with trade unions.
The electric car maker’s promise to significantly adjust the cost of living for workers at the Nevada Gigafactory also comes as Tesla faces increasing competition for talent, and as CEO Elon Musk stirs up controversy after controversy with public speaking engagements and posts on X, formerly Twitter, The social media platform that it acquired late last year.
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