Tesla Inc. is set to increase the wages of most hourly workers at its Nevada gigafactory by approximately 10% starting in January. CNBC reports that internal materials obtained from the company reveal that the pay for hourly workers at the battery factory in Sparks, Nevada, will range from $20 to $22 per hour at the low end and from $30.65 to $34.50 per hour at the high end.
The move comes as Tesla aims to curb unionization efforts at the facility. Last month, the United Auto Workers (UAW) announced its intentions to unionize workers at Tesla, as well as at Toyota and several other automakers. Following the settlement of the UAW strike with major automakers, Toyota and Honda had already granted raises to their nonunion U.S. employees earlier in November.
Shawn Fain, President of the UAW, emphasized the importance of union representation for auto workers in a November video statement and encouraged those working without the benefits of a union to consider joining.
However, Tesla and its CEO, Elon Musk, have staunchly opposed unionization efforts. In 2019, the National Labor Relations Board ruled against Tesla for unlawfully discouraging unionization attempts among its auto workers in Fremont, California. Additionally, in November, the NLRB dismissed another claim by a union alleging that Tesla had fired workers in Buffalo, New York, as a form of retaliation for seeking to unionize.
Beyond its domestic labor disputes, Tesla is currently engaged in labor negotiations with unions in Sweden, Finland, Norway, and Denmark.
While an official response from Tesla is pending regarding the reported pay raises, it is important to note that the company has experienced remarkable stock market success in 2021. Tesla shares have surged by approximately 105% this year, significantly outperforming the 23% gain of the S&P 500.
