Tesla Inc. has told employees at its California car plant that it plans to boost wages across its U.S. factories in what the electric-vehicle maker described as a “market adjustment pay increase,” Bloomberg reported Thursday.
The announcement was made on a poster at Tesla’s
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facility in Fremont, California and seen by Bloomberg, the news service’s report said.
The company did not immediately reply to an email from MarketWatch.
Tesla’s stock was down 2% on Thursday.
All material handlers, quality inspectors and production associates will be getting a raise, but specifics remain unknown.
CNBC-TV reported in December that Tesla planned to pay a 10% raise at to most hourly workers at its Nevada gigafactory starting in January.
The move follows other big auto makers in increasing pay for workers including major new labor contracts between the United Auto Workers and Ford Motor Co.
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Stellantis NV
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and General Motors Co.
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as well as Hyundai Motor Co.
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Toyota Motor Corp.
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and Volkswagen AG
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Tesla Chief Executive Officer Elon Musk has voiced opposition to the UAW and unions in the past.
On the company’s most recent quarterly financial call with analysts, Musk said pay for production workers among its roughly 140,000 workers worldwide will make the company’s “game of pennies” more challenging.
At the 20,000-worker Fremont, Calif., plant, workers have formed an organizing committee with the United Auto Workers.
A dispute with the UAW and the National Labor Relations Board over alleged violations of labor laws for Tesla’s move to fire a labor organizer remains in federal appeals court.
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Barbara Terrio is a seasoned business journalist, delving into the world of finance, startups, and entrepreneurship. With a knack for demystifying complex economic trends, she helps readers navigate the business landscape. Outside of her reporting, Barbara is an advocate for financial literacy and enjoys mentoring aspiring entrepreneurs.
