Electric vehicle manufacturer Tesla is set to raise the wages of workers at its battery factory in Sparks, Nevada, with some set-rate hourly workers seeing pay increases of around 10% starting in early January, as reported by CNBC.
Hourly workers at the lower end of the pay scale will see an increase from $20 to $22 an hour, equating to a 10% raise, while those at the higher end could see their wages rise to $34.50 an hour from $30.65, representing a 12.5% increase. Internal materials cited in the report indicated that the pay raises could result in an hourly pay increase of anywhere from $2 to $8.30. Specifically, several levels of workers currently earning between $26.20 and $30.65 an hour will be adjusted to $34.50 an hour, resulting in a 31% increase.
When reached for comment, Tesla did not immediately respond to a request from Reuters.
In light of these wage increases, the United Auto Workers (UAW) recently announced their intention to organize the entire nonunion auto sector in the U.S., following the union’s success in securing new record contracts with the Detroit Three automakers. Tesla CEO Elon Musk, however, has expressed his disapproval of the idea of unions, stating at the New York Times DealBook Summit that if Tesla were to become unionized, it would be a result of the company’s failure in some way.
Additionally, Japanese automakers Honda Motor and Toyota have also raised wages for non-union U.S. factory workers, putting a spotlight on the UAW’s potential shift towards organizing the workforce at foreign-owned and Tesla auto plants.
Overall, this wage increase announcement from Tesla reflects the ongoing labor dynamics within the automotive industry and can impact workforce management and labor practices in the sector.
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