Tesla is reportedly set to increase the pay for its production workers in the United States, according to a report by Bloomberg News. The pay raise comes amid a trend in the automotive industry, with companies like Volkswagen and Toyota also raising wages for their non-unionized U.S. workers. This move is seen as a response to the United Auto Workers (UAW) union’s efforts to organize workers after securing new labor deals with the Detroit Three.
The specific details of the pay hike were not disclosed by Tesla, but the report mentioned that material handlers, production associates, and quality inspectors will receive a “market adjustment pay increase.” The announcement was reportedly made through a flyer posted at Tesla’s facility in Fremont, California, where the electric automaker operates.
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Tesla is known as the world’s most valuable automaker and the company’s shares experienced a 2% decline in early trading following the news.
It’s noteworthy that Tesla CEO Elon Musk has been an outspoken critic of labor unions, particularly the United Auto Workers (UAW). Musk expressed his disagreement with the concept of unions in November at the New York Times DealBook Summit, stating, “If Tesla is unionized, it’ll be because we deserve it and we failed in some way.” Musk has a history of opposing unionization efforts at Tesla’s Fremont factory, going as far as warning workers in a 2018 tweet that joining the union could result in the loss of stock options. The National Labor Relations Board later ruled this warning as illegal.
The pay raise for Tesla’s U.S. factory workers comes against the backdrop of ongoing debates and efforts regarding workers’ rights, unionization, and fair wages in the automotive industry.
