Tesla has told workers at its battery factory in Sparks, Nevada, that some hourly workers there will see a pay rise of around 10% from the beginning of January 2024.
According to internal documents seen, and workers at the factory who have been informed of the “cost of living adjustments”, Tesla will raise hourly workers from $20 to $22 an hour at the low end, and from $30.65 to $34.50 an hour at the high end. It’s also streamlining some levels, so that several levels of workers earning between $26.20 and $30.65 an hour today will be adjusted to $34.50 an hour, for example.
The adjustments also represent a 10% or greater increase for most hourly workers, adding between $2 and $8.30 an hour to their pay.
The wage increases may help Tesla stave off workers’ interest in forming a union and pushing for a collective bargaining agreement in Nevada. Tesla did not immediately respond to a request for comment on the raises.
The United Auto Workers won record contracts after contentious negotiations and US strikes with General Motors, Ford Motor and Chrysler parent Stellantis earlier this year. As previously reported, UAW President Shawn Fain has repeatedly said he plans to take the fight from Detroit automakers to Tesla, Toyota Motor and other non-union automakers operating in the US.
In late October, workers at Tesla service and collision repair centres in Sweden launched a strike that has since spread to Denmark, Finland and Norway, involving workers in shipping, waste management and other services for Tesla. In recent weeks, one of Denmark’s largest pension funds said it would sell its holdings of Tesla shares because of the US giant’s refusal to reach agreements with unions.
The EV maker’s promise of a significant cost-of-living adjustment for workers at its Nevada Gigafactory also comes as Tesla faces increased competition for talent and as CEO Elon Musk sparks controversy after controversy through public speeches and posts on X, formerly Twitter, the social media platform he acquired late last year.
