Tesla is reportedly implementing a pay increase for all its production workers in the United States. The pay increases follow yet another record-setting year for the electric vehicle maker’s production and deliveries. It also comes amidst the ongoing efforts of the United Auto Workers (UAW) to organize the company’s workforce.
In a recent report, Bloomberg News noted that all “production associates, material handlers and quality inspectors” in the United States would be receiving a “market adjustment pay increase.” The publication cited a flyer that was reportedly posted at Tesla’s Fremont Factory, which it was able to view, as the source of its report. The flyer, however, reportedly did not mention just how much the workers’ “market adjustment pay increase” would be.
Tesla, for its part, has not issued a comment about the matter. However, Tesla CEO Elon Musk did give credit to the company’s workforce in a recent post on X. Musk was responding to a Tesla bull who highlighted that over the past eight years, US light vehicle sales declined by 2 million vehicles. But amidst this environment, Tesla saw notable growth.
Credit to the Tesla team https://t.co/GTzn8DWBOu— Elon Musk (@elonmusk) January 11, 2024
As is typical of Musk when Tesla’s accomplishments are mentioned on X, he gave credit for the company’s achievements to the electric vehicle maker’s employees. “Credit to the Tesla team,” Musk wrote in his response to the Tesla bull’s post.
Tesla is not the only non-union automaker that is increasing its workers’ pay. As per Bloomberg, Toyota, Volkswagen, and Hyundai also implemented pay increases for their workers at US factories. The pay increases may be part of the automakers’ strategy to dissuade workers from joining the UAW, which has trained its sights on the US’ non-unionized carmakers.
Following a hard-fought simultaneous strike against the Detroit Big Three, the UAW was able to secure record deals for its members who are working at Ford, General Motors, and Stellantis. The UAW is hoping that this momentum could allow it to unionize the workforce of companies like Tesla. The union’s record has been less than stellar, however, with employees at companies like Volkswagen and Nissan rejecting the UAW and unionization efforts at Tesla not even reaching a vote.
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