Updated December 19th, 2023 at 15:18 IST

Tesla plans to raise pay for hourly workers at Nevada Gigafactory

The new pay scale will range from $22 an hour on the low end (up from $20) to $34.50 an hour on the high end (up from $30.65).

Reported by: Business Desk
Tesla | Image:Unsplash
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Tesla Inc, the electric vehicle (EV) manufacturer, is set to implement pay raises for hourly workers at its battery factory in Sparks, Nevada, starting in early January, as reported by CNBC on Monday.

According to internal materials cited in the report, Tesla will raise the pay for hourly workers by approximately 10 per cent. The new pay scale will range from $22 an hour on the low end (up from $20) to $34.50 an hour on the high end (up from $30.65). This adjustment is expected to increase hourly wages by $2 to $8.30.

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Additionally, the company is streamlining pay levels, and consolidating various positions. For instance, workers currently earning between $26.20 and $30.65 an hour will be adjusted to the higher rate of $34.50 an hour, as mentioned in the report.

Tesla has not provided an official comment on these reported changes as of yet.

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The move comes amid a broader labour landscape in the auto industry. The United Auto Workers (UAW) recently announced plans to organise the entire nonunion auto sector in the US, following successful contract negotiations with major automakers. Tesla CEO Elon Musk has expressed his disagreement with the idea of unions, stating that unionisation if it occurs, would be because of a failure on Tesla's part.

The reported pay increases for Tesla's Nevada Gigafactory workers align with a trend in the industry, with Japanese automakers Honda Motor and Toyota also raising wages for non-union US factory workers. This development comes as the UAW explores organising efforts at foreign-owned and Tesla auto plants.

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(With Reuters inputs)

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Published December 19th, 2023 at 11:35 IST