Tesla will bump pay rates for its workers at its Gigafactory in Sparks, Nevada, by ten percent around the New Year, according to a report.
The move could be looked at as a way to fend off union interest from workers, as the company has been in the interest of several union groups across the world.
Hourly rate workers are set to have the raises, according to internal documents seen by CNBC, where workers with current pay rates of $20 will have $22, and $30.65 will become $34.50. The increases are set to add a range of $2 to $8.30 to the hourly worker’s pay rate.
Other levels of workers are being “streamlined,” meaning the workers making between $26.20 and $30.65 will be pushed to $34.50 per hour.
The increases were described as “cost of living adjustments,” as the cost of housing, groceries, and other needs have skyrocketed.
Tesla could be making the move to pull employees out of potential interest in unionizing, which has been a hot topic surrounding the company for some time.
Although Tesla is not a unionized company, the UAW said that the company’s employees are “members of the future,” and that, eventually, it will be bargaining with the “Big Five or Six” instead of just the Big Three.
UAW’s efforts to unionize Tesla ‘absolutely’ supported by President Joe Biden
UAW frontman Shawn Fein has Tesla set on his sights for the next potential unionization push as it looks to grow. This year, the organization’s negotiations with Ford, General Motors, and Stellantis were highly publicized as it halted production lines for weeks as unions fought for better benefits and pay.
However, the issue is not confined to the U.S. Unions are attempting to push Tesla to sign a collective bargaining agreement in Sweden, as well, and other unions are supporting the cause by halting support of Tesla in various ways.
The raises are currently confined to the Nevada Gigafactory, which builds powertrains and energy products for Tesla. It also is the production plant for the Tesla Semi.
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