Tesla is increasing wages for its factory workers in the US as the United Auto Workers Union (UAW) continues its efforts to unionize Tesla employees.
The UAW made headlines last year with a prolonged strike against the big three automakers in the US, which eventually turned into a 25% hourly pay increase over the course of the 4 year contract. Following its successful job action, the UAW said it was setting its sights on other non-unionized automakers, including Tesla, where it has previously attempted to organize several times, each time unsuccessfully.
With the start of the new year, Tesla has notified its factory workers of an impending pay raise.
According to a report from Bloomberg, the notification does not state how much the pay raise will be, but that it will be a “market adjustment pay increase,” and that it will apply to “production associates, material handlers and quality inspectors” at all of Tesla’s US factories. This includes Fremont, Giga Texas, Giga Nevada, and Giga New York.
CEO Elon Musk has been a vocal critic of unions, leading to Tesla being the only major automaker in the US not represented by one. His most recent comments on unionization came last month during an interview with the New York Times, in which he reiterated his stance against it.
“I disagree with the idea of unions. I just don’t like anything which creates kind of a lords and peasants sort of thing.”
Elon Musk
News of a pay raise for Tesla factory workers comes after reports emerged the automaker had decided to skip merit-based equity awards for salaried employees.
