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Tesla factory workers intensify unionization efforts, file charges with National Labor Board

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Tesla has dismissed charges filed by the Unfair Labor Practice with the National Labor Relations Board by two employees as “entirely without merit,” stating that it will respond to the allegations as part of the NLRB process.

In the latest chapter of the fight to unionize the Tesla Fremont factory, the United Autoworkers Union is again attempting to sway employees to the cause by filing an unfair labor practice charge, alleging illegal surveillance, coercion, intimidation and prevention of worker communications by Tesla in an effort to prevent or otherwise hinder unionization of the Fremont factory.

In response to past attempts by the UAW to influence workers at the Fremont factory to form a union, Tesla CEO Elon Musk made his pitch to employees against unionization in a letter to employees where he extolled the benefits Tesla was already providing without a union. The basis behind his argument hinged largely on the valuation of Tesla stock issued to employees and the subsequent increase in price of that stock.

Tesla was called to task in the charges for what is being characterized as an overly broad confidentiality agreement. Tesla has always operated more like a Silicon Valley technology company than a car manufacturer, and its company policy on confidentiality reflects that of technology companies that produce highly competitive, industry shifting tech that are often bound by strict deadlines.

In the midst of leading the disruption of several industries, while making headlines for every move the company makes, it comes as no surprise that Tesla opted for an overly broad confidentiality agreement. However, the confidentiality agreement was deemed to be so broad that the company was contacted by five members of the California legislature and a number of organizations in the Bay Area in a request to loosen up wording of the agreement and ensure it did not infringe upon employee rights. According to a report by Capital and Main, the statement currently includes language requiring confidentiality in relation to “everything that you work on, learn about or observe in your work about Tesla.”

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The new charges also call out Tesla for alleged violations in several specific areas, one of which was preventing the distribution of flyers by employees at shift change on company property. After several workers handed out literature about unionization at the factory in February, Tesla fired back with a new policy stating that workers “were not allowed to pass out any literature unless it was pre-approved by the Employer.” The charges make a plea that employees should have the right to bring up issues and to talk about them amongst themselves as a means of driving towards resolution.

The charges will be reviewed by the NLRB which will make a determination after gathering input from all parties involved.

These charges highlight the challenge Tesla faces as it seeks to ramp up factory operations as part of the Model 3 production ramp. With all hands on deck to deliver Model 3, Tesla has its work cut out for it as it seeks to balance the rights, needs and morale of its employees with the needs of the business.

Here’s the full text of Musk’s company wide email that was published by TechCrunch in February that discusses unionization efforts taking place at the factory. We’ve also obtained a copy of Tesla’s confidentiality agreement to employees which we’ve embedded below.

For Tesla to become and remain one of the great companies of the 21st century, we must have an environment that is as safe, fair and fun as possible. It is incredibly important to me that you look forward to coming to work every day. For that, we must be a fair and just company – the only kind worth creating.

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This is vital to succeed in our mission to accelerate the advent of a clean, sustainable energy future. The forces arrayed against us are many and incredibly powerful. This is David vs Goliath if David were six inches tall! Only by being smarter, faster and working well as a tightly integrated team do we have any chance of success. We should never forget the history of car startups originating in the United States: dozens have gone bankrupt and only two, Tesla and Ford, have not. Despite the odds being strongly against us, my faith in you is why I am confident that we will succeed.

That is why I was so distraught when I read the recent blog post promoting the UAW, which does not share our mission and whose true allegiance is to the giant car companies, where the money they take from employees in dues is vastly more than they could ever make from Tesla.

The tactics they have resorted to are disingenuous or outright false. I will address their underhanded attacks below. While this discussion focuses on Fremont, these same principles apply to every Tesla facility worldwide.

Safety First

The workplace issue that comes before any other is safety. If you do not have your health, then nothing else matters. Simply due to size and bad luck, there will always be some injuries in a company with over 30,000 employees, but our goal is simple: to have as close to zero injuries as possible and be the safest factory in the auto industry by far. The Tesla executive team and I are absolutely committed to this goal.

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That is why I was particularly troubled by the safety claim in last week’s blog post, which said: “A few months ago, six out of eight people in my work team were out on medical leave at the same time due to various work-related injuries. I hear the ergonomics are even more severe in other areas of the factory.”

Obviously, this cannot be true: if three quarters of his team suddenly went on medical leave, we would not be able to operate that part of the factory. Furthermore, if things were really even worse in other departments, that would mean something like 80% or more of the factory would be out on injury, production would drop to virtually nothing and the parking lot would be almost empty. As you know firsthand, we have the *opposite* problem – there is never enough room to park! In fact, we are working at top speed to build more parking. Also, hopefully our darn BART train station will open before all hell freezes over!

After looking into this claim, not only was it untrue for this individual’s team, it was untrue for any of the hundreds of teams in the factory.

That said, reducing excess overtime and improving safety are extremely important. This is why we hired thousands of additional team members to create a third shift, which has reduced the burden on everyone. Moreover, since the beginning of Tesla production at Fremont five years ago, there have been dedicated health and safety experts covering the factory and we hold regular safety meetings with operations leaders. Since the majority of the injuries in the factory are ergonomic in nature, we have an ergonomics department focused exclusively on this issue.

The net result is that since January 1st, our total recordable incident rate (TRIR) is under 3.3, which is less than half the industry average of 6.7.

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Of course, the goal is to have as close to zero injuries as humanly possible, so we need to keep improving. If you have a safety concern or an idea on how to make things better, please let your manager, safety representative or HR partner know. You can also send an anonymous note through the Integrity Hotline (this applies broadly to any problems you notice at our company) or you can email safety@tesla.com.

Compensation

At Tesla, we believe it is important for everyone to be an owner of the company. This is your company. That is why, unlike other car companies, everyone is awarded shares and you get to buy stock at a discount compared to the public through the employee stock purchase program. Last year, stock equity grants were increased significantly and it will happen again later this year once Model 3 achieves high volume.

The chart below contrasts the total comp received by a Tesla production team member who started on January 1, 2013 against the total comp received over the same period at GM, Ford, and Fiat Chrysler. A four year period is used because that’s the vesting length of a new hire equity grant. I believe the equity gain over the next four years will be similar. As shown below, a Tesla team member earned between $70,000 and $100,000 more in total compensation than the employees at other US auto companies!

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Work Hours

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Another issue raised in the UAW blog was hours worked. First, I want to recognize how hard you worked to make our company successful. Those hours mattered to you, to your family and to our company, and I can’t tell you how much I appreciate them.

However, the pace needs to be sustainable. This is why the third shift was established and why we created alternate work schedules based on feedback from various teams in the factory.

These changes have had a big impact. The average amount of hours worked by production team members this year is about 43 hours per week. The percentage of overtime hours has declined by almost 50% since the super tough time we had last year achieving rate on the Model X, which is probably the hardest car to build in history. What an amazing accomplishment! It is also a lesson learned, which is why Model 3 is designed to be dramatically easier to manufacture.

Fun

As we get closer to being a profitable company, we will be able to afford more and more fun things. For example, as I mentioned at the last company talk, we are going to hold a really amazing party once Model 3 reaches volume production later this year. There will also be little things that come along like free frozen yogurt stands scattered around the factory and my personal favorite: a Tesla electric pod car roller coaster (with an optional loop the loop route, of course!) that will allow fast and fun travel throughout our Fremont campus, dipping in and out of the factory and connecting all the parking lots. It’s going to get crazy good ?

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Thanks again for all your effort and I look forward to working alongside you to create an amazing future!

Elon

[pdf-embedder url=”http://www.teslarati.com/wp-content/uploads/2017/04/Tesla-Employee-Confidentiality-Agreement.pdf”]

I'm passionate about clean technology, sustainability and life. I've worked in manufacturing, IT, project management and environmental...and enjoy unpacking complex topics in layman's terms. TSLA investor. Find more of my words on my website or follow me on Twitter for all the latest. Tesla Referral link: http://ts.la/kyle623

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Tesla Model 3 and Model Y named top car buys in Norway

Despite growing competition from European and Korean brands, both models stood out for their balance of price, performance, and everyday usability.

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Credit: Grok Imagine

Norway’s annual roundup of the best car purchases featured Tesla’s two main sellers this year, with the Model 3 and Model Y securing top positions in their respective segments. 

Despite growing competition from European and Korean brands, both models stood out for their balance of price, performance, and everyday usability. The verdict comes as electric vehicle adoption remained above 95% of new vehicle sales in the country.

Tesla Model 3 strengthens its value position

Among compact EVs, the Tesla Model 3 maintained its position as the best overall buy thanks to its strong blend of performance, efficiency, and updated features. Reviewers noted that every trim offered compelling value, especially with the all-electric sedan’s improved cabin ergonomics and the return of the turn-signal stalk, which was one of the few previous complaints among drivers. 

The Model 3’s mix of long-range capability, low operating costs, and responsive handling has continued to set the benchmark for compact EVs in Norway. While competitors from Hyundai, Volkswagen, and Peugeot have narrowed the gap, Tesla’s price-to-capability ratio has remained difficult to beat in this segment, Motor.no reported.

“The Model 3 clearly offers the best value for money in the compact class, no matter which version you choose. Now it also gets the turn signal lever back. This eliminates one of the few flaws in a driving environment that many believe is the best on the market,” the publication wrote. 

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Tesla Model Y claims its crown

The Tesla Model Y emerged as Norway’s top family-car purchase this year. The latest refresh introduced improvements in ride quality, styling, and interior materials, allowing the Model Y to deliver a more premium driving experience without a substantial price increase. 

Reviewers praised its spacious cabin, strong safety profile, and practical range, all of which reinforced its appeal for families needing an all-purpose electric crossover. The Model Y remains especially notable given its continued popularity in Norway even as Tesla faces declining sales in other global markets.

“The Model Y is back as the winner in the family class. The upgrade in the new year was even more extensive than expected. It is a slightly more elegant and significantly more comfortable Model Y that solidifies its position as Norway’s best car purchase in the most important class,” the Norwegian motoring publication noted.

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Tesla Giga Berlin is still ramping production to meet Model Y demand: plant manager

Tesla Gigafactory Berlin has expanded to two full shifts, as per the facility’s plant manager, and a lot of it is due to Model Y demand.

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Credit: Tesla/X

Tesla Gigafactory Berlin has expanded to two full shifts, as per the facility’s plant manager, and a lot of it is due to Model Y demand. While registrations in some countries such as Sweden have fallen sharply this year, the company’s sales in other key territories have been rising. 

Giga Berlin shifts to two shifts

Giga Berlin factory manager André Thierig told the DPA that the facility has been running two shifts since September to manage a surge in global orders. And due to the tariff dispute with the United States, vehicles that are produced at Giga Berlin are now being exported to Canada. 

“We deliver to well over 30 markets and definitely see a positive trend there,” Thierig said.

Despite Giga Berlin now having two shifts, the facility’s production still needs to ramp up more. This is partly due to the addition of the Tesla Model Y Performance and Standard, which are also being produced in the Grunheide-based factory. Interestingly enough, Giga Berlin still only produces the Model Y, unlike other factories like Gigafactory Texas, the Fremont Factory, and Gigafactory Shanghai, which produce more than one type of vehicle. 

Norway’s momentum

Norway, facing an imminent tax increase on cars, has seen a historic spike in Tesla purchases as buyers rush to secure deliveries before the change takes effect, as noted in a CarUp report. As per recent reports, Tesla has broken Norway’s all-time annual sales record this month, beating Volkswagen’s record that has stood since 2016.

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What is rather remarkable is the fact that Tesla was able to achieve so much in Norway with one hand practically tied behind its back. This is because the company’s biggest sales draw, FSD, remains unavailable in the country. Fortunately, Tesla is currently hard at work attempting to get FSD approved for Europe, a notable milestone that should spur even more vehicle sales in the region.

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Tesla launches crazy Full Self-Driving free trial: here’s how you can get it

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tesla full self driving
Credit: Tesla

Tesla is launching a crazy Full Self-Driving free trial, which will enable owners who have not purchased the suite outright to try it for 30 days.

There are a handful of stipulations that will be needed in order for you to qualify for the free trial, which was announced on Thursday night.

Tesla said the trial is for v14, the company’s latest version of the Full Self-Driving suite, and will be available to new and existing Model S, Model 3, Model X, Model Y, and Cybertruck owners, who will have the opportunity to try the latest features, including Speed Profiles, Arrival Options, and other new upgrades.

You must own one of the five Tesla models, have Full Self-Driving v14.2 or later, and have an eligible vehicle in the United States, Puerto Rico, Mexico, or Canada.

The company said it is a non-transferable trial, which is not redeemable for cash. Tesla is reaching out to owners via email to give them the opportunity to enable the Full Self-Driving trial.

Those who are subscribed to the monthly Full Self-Driving program are eligible, so they will essentially get a free month of the suite.

Once it is installed, the trial will begin, and the 30-day countdown will begin.

Tesla is making a major push to increase its Full Self-Driving take rate, as it revealed that about 12 percent of owners are users of the program during its recent earnings call.

Tesla CFO Vaibhav Taneja said during the call:

“We feel that as people experience the supervised FSD at scale, demand for our vehicles, like Elon said, would increase significantly. On the FSD adoption front, we’ve continued to see decent progress. However, note that the total paid FSD customer base is still small, around 12% of our current fleet.”

Earlier today, we reported on Tesla also launching a small-scale advertising campaign on X for the Full Self-Driving suite, hoping to increase adoption.

Tesla Full Self-Driving warrants huge switch-up on essential company strategy

It appears most people are pretty content with the subscription program. It costs just $99 a month, in comparison to the $8,000 fee it is for the outright purchase.

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