Tesla is implementing a round of pay increases for its hourly workers at Giga Nevada, a move that could potentially quell growing unionization efforts among its workforce. The pay adjustments are set to take effect in early January 2024.
Internal materials obtained by CNBC reveal that the adjustments will impact various levels of hourly workers, with lower-end wages increasing from $20 to $22 per hour and higher-end wages rising from $30.65 to $34.50 per hour. Additionally, Tesla is streamlining pay levels, adjusting several positions that currently earn between $26.20 and $30.65 an hour to a standardized $34.50 per hour.
These “cost of living adjustments” are expected to result in a 10% or more increase for most hourly workers, equating to additional earnings ranging from $2 to $8.30 per hour. The move is seen as a proactive measure to dissuade workers from pursuing unionization or advocating for a collective agreement in Nevada.
The decision to increase pay comes at a crucial juncture for Tesla, as the UAW has expressed its intent to extend the fight for workers’ rights to non-unionized automakers, including Tesla. Recent labour strikes at Tesla Service Centers in Sweden, with sympathy strikes spreading to Denmark, Finland, and Norway, have added momentum to the global labour unrest.
Tesla’s announcement also follows in the footsteps of other automakers, such as Toyota and Honda, which granted raises to their non-union U.S. workers in the aftermath of the UAW’s negotiations with major automakers earlier in the year.