Tesla Inc (NASDAQ:TSLA) has told workers at its battery factory in Sparks, Nevada, that some set-rate hourly workers there will see pay increases around 10% starting in early January 2024, CNBC reported on Tuesday, citing internal company materials.
Pay increases for Gigafactory workers may help Tesla stave off workers’ interest in forming a union and pushing for a collective agreement in Nevada, the media outlet noted.
Tesla is expected to increase wages for hourly workers from $20 to $22 an hour on the low end, and from $30.65 up to $34.50 an hour on the high end.
In late October, workers at Tesla service and collision repair centers in Sweden walked off the job in a labor disruption that has spread to Denmark, Finland and Norway and includes workers involved in shipping, waste management and providing other services to Tesla.
And recently, one of Denmark’s largest pension funds said it would sell its Tesla stock over the company’s refusal to enter into agreements with labor unions.
Increased competition for skilled workers in the lithium batteries space is also thought to have prompted Tesla’s initiative.
Shares of Tesla rose 1.5% to $255.95 in midday trading on Tuesday and have gained 137% year to date.