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Tesla announces pay bump for hourly workers in Nevada Gigafactory
https://www.whatjobs.com/news/usa/us-employment-news/tesla-announces-pay-bump-for-hourly-workers-in-nevada-gigafactory
By Nithya Bose in US business news, posted December 19, 2023
Tesla has plans to raise pay for hourly workers at its Gigafactory in Sparks, Nevada, in a move aimed at averting union interest.
The automaker will increase wages by approximately 10 percent for certain set-rate hourly workers starting in early January 2024.
The adjustments will see hourly wages go from $20 to $22 at the lower end and from $30.65 to $34.50 at the higher end.
Read More: UAW Initiates Union Drive At Tesla And A Dozen Automakers
Tesla would also streamline pay levels, consolidating various hourly wage ranges.
This restructuring will result in a 10 percent or greater raise for most hourly workers, with pay increases ranging from $2 to $8.30 per hour.
The pay bump is a strategic move to dissuade its Nevada workforce from unionizing and engaging in collective bargaining.
The United Auto Workers (UAW) has expressed interest in extending its reach to non-unionized automakers, including Tesla.
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It followed successful negotiations with major automakers earlier in the year.
Tesla's decision to address worker compensation could be an attempt to preempt unionization efforts and maintain positive employee relations.
The announcement comes amid labor strikes affecting Tesla service and collision repair centers in Sweden.
However, the industrial actions are now spreading to Denmark, Finland, and Norway.
Workers involved in shipping, waste management, and other services for Tesla are participating in the strikes.
The unrest in Europe highlights growing tensions between Tesla and its workforce.
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It prompted a Danish pension fund to divest its Tesla holdings due to the company's refusal to engage in agreements with labor unions.
The move came when CEO Elon Musk faced controversies through his social media platform X (formerly Twitter).
Musk's public statements and engagements have stirred controversy.
It adds another layer of complexity to Tesla's efforts to maintain a positive public image and navigate challenges on multiple fronts.
The pay adjustments may also respond to higher competition for talent in the electric vehicle industry.
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