Tesla (TSLA) has reportedly told its production workers that it is increasing their wages amid a push to unionize them.

Last year, UAW had a historic win following a strike that earned 25% pay increases at all of the Big Three American automakers.

Following the win, UAW made it clear that it plans to turn it site to the few automakers in the US, mainly Tesla and a few foreign automakers, who produce vehicles in the US with a non-unionized workforce.

The UAW has tried to unionize Tesla’s workforce in Fremont, California, a few times, but it has been unsuccessful.

According to a new report from Bloomberg, Tesla has told employees that they are getting a new pay increase:

All US production associates, material handlers and quality inspectors are getting a “market adjustment pay increase” to kick off the new year, according to a flyer posted at Tesla’s facility in Fremont, California. The document viewed by Bloomberg News doesn’t say how much of a raise workers will get. Tesla’s senior director of human resources didn’t respond to questions.

The move could be in anticipation of a new unionization campaign to convince Tesla employees to join UAW and sign a collective bargaining agreement.

Tesla also recently told salaried employees that they won’t be getting their normal stock compensation following their annual reviews.

At a conference in November, Elon Musk again shared his disapproval of unions and 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.”

During the UAW strike, the CEO suggested that if the union got everything it wanted, it could be the end of the Big Three Automakers.

Electrek’s Take

As we previously reported, we expected that the UAW win would be good for Tesla workers, and other non-unionized workers, regardless of whether they join the union or not.

This is why.

Tesla had to hike its pay if it wants to keep its workers.

Now, whether the decide to join UAW whenever the inevitable unionization push comes is another story.

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MuskWire TLDR:

Tesla has reportedly informed its production workers that it will be increasing their wages as part of a push to unionize them. This move comes after the United Auto Workers (UAW) had a successful strike last year, resulting in 25% pay increases at major American automakers. Following this victory, the UAW expressed its intention to focus on unionizing automakers in the US, including Tesla, that have non-unionized workforces. Despite previous attempts by the UAW to unionize Tesla’s Fremont, California workforce, they have been unsuccessful. However, according to a recent report from Bloomberg, Tesla has announced a pay increase for its production associates, material handlers, and quality inspectors, though the exact raise amount remains undisclosed. This wage hike could be a preemptive move by Tesla in anticipation of a new unionization campaign aimed at persuading employees to join the UAW and sign a collective bargaining agreement. It is worth noting that Tesla CEO Elon Musk has expressed his disapproval of unions in the past, stating that if Tesla were to become unionized, it would be because the company failed in some way. Despite this, the UAW strike’s success has likely influenced Tesla’s decision to increase wages in order to retain its workers. Whether Tesla employees ultimately decide to join the UAW during an inevitable unionization push remains uncertain.