Tesla Inc. is set to implement substantial pay increases for the majority of its hourly workers at the Nevada gigafactory, beginning in January, according to a report from CNBC on Monday.
Internal documents obtained by CNBC indicate that hourly wages for most workers at the Sparks, Nevada, battery factory will experience an uptick, with the lower end of the pay scale rising from $20 to $22 per hour and the higher end seeing an increase from $30.65 to $34.50 per hour.
As of the time of the report, Tesla (TSLA) has not responded to requests for confirmation or comments on the alleged pay raises.
The motivation behind these wage hikes is speculated to be linked to a broader context, possibly as a measure to curb unionization efforts within the facility.
Last month, the United Auto Workers (UAW) announced plans to pursue unionization among workers at Tesla, Toyota, and other automakers.
Toyota and Honda had earlier announced wage increases for their nonunion US employees in November, shortly after the resolution of the UAW strike with major automakers, resulting in substantial pay raises.
Tesla Faces Ongoing Labor Struggles
In a video statement released in November, UAW President Shawn Fain urged non-unionized auto workers to consider unionization, stating, “To all the auto workers out there working without the benefits of a union: Now it’s your turn.”
Tesla, led by CEO Elon Musk, has consistently opposed unionization efforts. In 2019, the National Labor Relations Board (NLRB) determined that Tesla had unlawfully discouraged its auto workers in Fremont, California, from forming a union.
Furthermore, in November, the NLRB dismissed claims by a union that Tesla had terminated workers in Buffalo, New York, as an act of retaliation for unionization attempts.
Tesla is currently embroiled in a labor dispute with unions across Sweden, Finland, Norway, and Denmark.
Despite these labor-related challenges, Tesla’s stock has demonstrated remarkable resilience, surging approximately 105% year-to-date, a stark contrast to the S&P 500’s more modest 23% gain during the same period.
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