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Tesla Tells Production Workers: "You Are Getting a Pay Raise" As It Combats The UAW

Tesla, according to Bloomberg, has told its production workers that they are getting a pay raise. This could be to combat the UAW that wants to unionize its workers.
https://www.bloomberg.com/news/articles/2024-01-11/tesla-boosts-pay-for-us-factory-workers-as-uaw-momentum-builds?embedded-checkout=true

Tesla Offering Its Workers Pay Raise

According to Bloomberg News, Tesla told its workers in the U.S. on the production line that they will be getting a pay raise - via a flyer posted at Tesla's facility in Fremont, CA. This is likely to combat the increase pressure from the UAW (United Auto Workers) to unionize Tesla's workers.

The pay increase goes to production associates, quality inspectors and will be a market adjustment pay increase, according to Bloomberg's report.

Tesla does not have unionized workers at this time, although there has been immense pressure from Unions, particularly IF Metall in Sweden, to get Tesla to do so.

Tesla offering its production workers a pay raise is the right and smart thing to do. I don't see any way that Elon Musk will ever support unionized workers when they can be fairly compensated with market competitive pay and stock options.

Elon Musk has even said:

"I disagree with the idea of unions"

"If Tesla is unionized, it'll be because we deserve it and we failed in some way"

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Tesla Offers Better Perks Than Unions

When you look at the market growth of Ford, GM, VW, and other legacy automakers over time, one thing is clear. These companies are not growing to the point that their stock becomes much more valuable over time.

When you look at Tesla, there has been significant growth in its stock since inception, with plenty of runways to go still. To me, this is a motivating factor for employees who want to retire with enough money to live comfortably.

There is the pension route, however, Tesla stock is a better option, especially with all the things that could go right for the future, including FSD, Tesla Bot, Energy, and increased auto sales, just to name a few.

If I were working at Tesla - which is an incredibly hard company to get in and work for - I would want stock instead of any kind of Union bargaining agreement.

If Tesla does unionize at some point, I'm going to be pretty discouraged because it means that the growth of Tesla isn't seen as viable anymore, and a better incentive structure has been viewed to have union incentives. This would be the beginning of the end for Tesla.

It's unknown what the pay raise is for Tesla's production workers at this time - hopefully one will come forward and say what percent increase they got, but my hope is that it is at least 3 to 4 percent or more - at a minimum to combat inflation.

In Other Tesla News: "A Few Other Products Coming Too" Says Elon Musk, In Addition To Compact Car, FSD, Robotaxi, and Tesla Bot

What do you think about Tesla giving a pay raise to its workers? Is this better than having a union?

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Hi! I'm Jeremy Noel Johnson, and I am a Tesla investor and supporter and own a 2022 Model 3 RWD EV and I don't have range anxiety :). I enjoy bringing you breaking Tesla news as well as anything about Tesla or other EV companies I can find, like Aptera. Other interests of mine are AI, Tesla Energy and the Tesla Bot! You can follow me on X.COM or LinkedIn to stay in touch and follow my Tesla and EV news coverage.

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Article Reference: Bloomberg

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