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Tesla factory workers set for pay rise

By Nithya Bose in Business News, posted January 12, 2024

Tesla is raising pay for its US factory workers, labeled as "market adjustments," according to notices posted at its vehicle assembly plant in Fremont, California.

A Fremont employee confirmed the dissemination of 2024 pay rate information and recent implementation of raises.

The move follows Tesla workers at the Nevada battery plant being told informed of hourly rate hikes last month.

It constitutes approximately 10 percent increases, with variations based on position and exclusive of potential bonuses.

These wage increases coincide with the United Auto Workers' (UAW) declaration to organize at least one Tesla plant following successes at major Detroit automakers.

Led by Shawn Fain, the UAW aims to gain recognition of the union by the company or a vote once it attains around 70 percent support of workers at a factory.

Union: “As great as these raises are, they still fall far short of what the companies can afford and what autoworkers are worth”

Fain said: “Tesla is now following in the footsteps of Toyota, Hyundai, Volkswagen, and almost every other car company in raising wages in the wake of our historic victory at the Big Three, as non-union autoworkers everywhere are starting to stand up for themselves.

“As great as these raises are, they still fall far short of what the companies can afford and what autoworkers are worth.”

The number of signed authorization cards remains undisclosed.

Tesla's director of people operations and programs has not responded to requests for comment.

CEO Elon Musk, a long-time critic of unions, clashed with the National Labor Relations Board, facing violations of federal labor laws.

It includes a 2018 tweet deemed an unlawful threat by a federal appeals court.

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President Joe Biden has expressed support for organizing efforts at plants without union recognition, encompassing Tesla and Toyota.

Tesla also faces union challenges in Europe, with at least 15 unions joining IF Metall in strikes to influence negotiations for industry-standard wages and benefits in Sweden.

Large pension funds in Scandinavia have urged Tesla to reconsider its stance on working with unions and collective agreements.

Following reports of US pay increases and production suspension in Germany due to Red Sea-related supply chain issues, Tesla shares closed down 2.9 percent on Thursday.

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