Electric vehicle maker Tesla announced pay raises for workers at Gigafactory Nevada this week amid a push by the United Auto Workers to unionize the company.
The factory, near Reno, makes batteries and other components.
Workers were informed this week in an email Monday that significant “cost of living adjustments” were coming down the pipeline. Tesla will raise hourly wages for lower-ranked employees from $20 to $22 hourly, and higher-ranked employees will see a boost from $30.65 to $34.50 an hour.
The raises constitute a 10% gain.
Tesla is following the lead of other automotive companies in the wake of UAW’s new contracts with Ford, General Motors and Stellantis. After the union signed deals with those three and secured massive pay increases for its members, nonunion companies such as Honda, Toyota and Hyundai announced they would boost wages by 10%.
The raises might be a way for the carmakers to persuade their workers against recognizing a union.
UAW President Shawn Fain has said the union is focusing on nonunion automakers in the U.S., including Tesla, whose CEO, Elon Musk, is openly anti-union.
Mr. Musk’s stance is being put to the test in Scandinavia. After Tesla refused to sign a collective bargaining agreement with 125 of its unionized Swedish mechanics, nearly the entire region has launched sympathy strikes, refusing to do business with the company.
• Vaughn Cockayne can be reached at vcockayne@washingtontimes.com.
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