Tesla, the electric vehicle manufacturer led by Elon Musk, may be taking a different approach to addressing unionization efforts at one of its plants in Nevada. Internal company documents have revealed that Tesla intends to provide pay raises of approximately 10% to certain hourly workers starting in January. The wage adjustment would boost pay rates from $20 to $22 per hour at the low end, and from $30.65 to $34.50 per hour at the higher end.
While this move may be an attempt to dissuade workers from unionizing, implementing pay hikes across its facilities could impact Tesla's margins. The company is already reducing vehicle prices in various markets to stimulate sales.
Tesla's potential wage adjustments come amidst ongoing disruption in Scandinavia, where workers are actively seeking to unionize. The United Auto Workers (UAW), having successfully secured wage increases of 25% until 2028 for members at Ford, General Motors, and Stellantis earlier this year, is now looking to expand their reach to other automakers.
As of now, Tesla has not provided any comment regarding this matter. The company's shares experienced a slight increase of 0.3% in premarket trading, reaching $252.88 per share. Notably, Tesla shares have more than doubled in value this year.
Elon Musk, the CEO of Tesla, has previously voiced his disapproval of unions. During a recent statement, he referred to the small-scale strikes initiated by mechanics in Sweden and subsequently joined by dockworkers in other countries as "insane."
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