Tesla is famously non-union, but it’s not immune to the effects of a well-negotiated UAW contract. The automaker is significantly boosting pay for workers at its factory in Sparks, Nevada, by as much as ten percent, bringing it closer in line with the wage increases seen by union auto workers.
Workers making $20 an hour will see an increase to $22, while higher-wage employees will go from $30.65 an hour to $34.50. Tesla is also simplifying its wage tiers, bringing workers making between $26.20 and $30.65 an hour up to $34.50. Union autoworkers saw more significant increases, with some getting more than a 150 percent raise.
Though CEO Elon Musk said a Tesla union would mean the company had “failed in some way,” its pay raises are its last line of defense against the UAW, which said it would launch a push to organize non-union automakers. Toyota, Volkswagen, Honda, Tesla, and others are on that list, and several of them have instituted similar pay increases in recent times.
It’s unclear if Tesla’s employee base will be swayed by the union’s efforts, but the company is facing the wrath of Europe’s unions. A labor dispute that started in Sweden spread to other countries and could threaten the automaker’s ability to ship and sell cars in some countries.
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