Faced with pressure from the American Automobile Workers Union, Tesla, which has always opposed the establishment of unions, also had to bow down.
Tesla has notified workers at the Sparks battery factory in Nevada, USA that starting from early January 2024, the wages of some fixed hourly workers will be raised by about 10%.
According to internal materials seen by the media, as well as Nevada battery factory workers who were informed of a "cost of living adjustment," Tesla will raise the minimum hourly wage from $20 to $22 and the maximum hourly wage from $30.65 to $34.50.
Tesla has also simplified the wage structure of the factory, for example, several levels of workers currently earning between $26.20 and $30.65 per hour will have their wages raised to $34.50 per hour.
For most hourly workers, this adjustment also means a salary increase of 10% or more, ranging from $2 to $8.30 per hour.
Or it may help dispel workers' interest in forming unions
A salary increase may help Tesla discourage workers from forming unions and drive interest in reaching collective agreements at factories in Nevada.
Previously, in response to the positive actions of local unions, Tesla has provided a 4% salary increase for German factory workers since November. IG Metall, the largest union in Germany, has stated that Tesla's German workers receive lower wages than the industry average.
After a six week long strike by American auto workers, the UAW reached a record breaking labor agreement with General Motors, Ford, and Stellantis NV at the end of October.
After achieving a historic victory in the struggle against the three giants of automobiles, UAW has repeatedly stated that it will shift its focus from Detroit automakers to Tesla, Toyota, and other non unionized car companies operating in the United States.
This puts pressure on car manufacturers without unions in the United States to increase their compensation and benefits. Since the UAW reached an agreement, some other non union car manufacturers have voluntarily raised wages for American factory workers, including Japanese automakers Toyota, Honda, and Korean automaker Hyundai.
At the 2023 DealBook Summit held by The New York Times last month, when asked what the efforts of unions mean to Tesla, Tesla CEO Musk stated that he does not recognize unions. He stated that the union was just trying to put employees in opposition to management, and if Tesla were to form a union, it would be because it deserved it and failed in some aspects.
Currently, Tesla is embroiled in an escalating strike in the Nordic region. In late October, workers at Tesla's service and collision repair center in Sweden launched a strike, which has now spread to Denmark, Finland, and Norway. Workers involved in transportation, waste management, and providing other services to Tesla have also joined the strike.
In recent weeks, one of Denmark's largest pension funds has announced that due to Tesla's refusal to reach an agreement with unions, the institution will sell its holdings of Tesla stocks.