Tesla (TSLA) is allegedly raising compensation for its production workers as part of an effort to unionize them.
Last year, the UAW achieved a historic victory with a strike that resulted in 25% wage raises at all three American manufacturers.
Following the victory, the UAW stated unequivocally that it intends to shift its focus to the few manufacturers in the US, namely Tesla and a few foreign automakers, that produce vehicles in the US with a non-unionized workforce.
The UAW has attempted several times to unionize Tesla's workforce in Fremont, California, but has been unsuccessful.
According to a new Bloomberg article, Tesla has informed staff of a new wage increase:
All US production associates, material handlers and quality inspectors are getting a “market adjustment pay increase” to kick off the new year, according to a flyer posted at Tesla’s facility in Fremont, California. The document viewed by Bloomberg News doesn’t say how much of a raise workers will get. Tesla’s senior director of human resources didn’t respond to questions.
The move might be in response to a fresh unionization drive aimed at convincing Tesla employees to join the UAW and sign a collective bargaining agreement.
Tesla has also just informed paid staff that they will not get their standard stock compensation following their yearly evaluations.
Elon Musk expressed his disdain for unions once more during a conference in November, saying:
“I disagree with the idea of unions. If Tesla is unionized, it’ll be because we deserve it and we failed in some way.”
During the UAW strike, the CEO stated that if the union received all it wanted, the Big Three Automakers would be doomed.
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