Tesla Is Increasing Pay for Factory Workers While UAW Tries To Unionize

This month, Tesla is boosting the salaries of many factory workers across the United States. The announcement was initially discovered through posters at Tesla’s vehicle assembly site in Fremont, California, and later confirmed by an anonymous employee from the plant. 

In January, Tesla’s battery plant workers in Sparks, Nevada, experienced a similar change as their hourly rates went up. On average, Nevada workers saw about a 10% increase in their wages, excluding bonuses available to some employees. 

This latest salary hike follows an announcement from the United Auto Workers (UAW) union seeking to organize workers at Tesla factories, a move motivated by several recent victories at Detroit’s big three automakers. UAW, under the leadership of Shawn Fain, has started circulating an authorization card online to collect the names and signatures of Tesla employees interested in joining the union. The goal is to achieve recognition or a vote from Tesla once about 70% of its workers indicate their interest.

This isn’t the first time Tesla has faced union pressures. CEO Elon Musk, known for his disputes with labor unions, was found guilty of violating federal labor laws in the past. One instance occurred in 2018 when he tweeted that Tesla plant workers in Fremont would lose their stock options if they decided to unionize, an act that was ruled as an unlawful threat by a federal appeals court.

The push for unionization doesn’t stop within the U.S. borders. Tesla has faced comparable issues in Europe as well, including strikes and boycotts from service workers last year. Major pension funds in Scandinavia have implored Tesla to rethink its stance on labor union interactions and collective agreements.

President Joe Biden has shown support for unionization efforts among companies that do not currently acknowledge unions, a group that includes Tesla.

Amidst the news of increased worker pay, Tesla’s shares fell by 2.9%. This was compounded by the announcement that the automaker was going to halt production for two weeks in Germany due to supply chain issues triggered by recent attacks in the Red Sea.