As GM Authority was tirelessly following, the contract negotiations between General Motors and the UAW union ultimately resulted in a 25 percent wage increase over the life of the new agreement, among a bevy of other items. More recently, the impact of this contract has been felt outside of the unionized U.S. plants, with Tesla now announcing a wage bump across its U.S. facilities.
According to a report from Bloomberg, all Tesla U.S. production associates, material handlers and quality inspectors are to receive what Tesla calls a “market adjustment pay increase” to kick off the 2024 calendar year. Notably, it’s currently unknown exactly what this raise entails.
As one may expect, the UAW is attempting to leverage its success with the Big Three contract negotiations against non-unionized automakers and factories to broaden its reach, and is looking to double the number of auto workers amongst its ranks.
That being said, past efforts have either been rejected by the workers themselves, or never made it to a vote at all. To that end, UAW President Shawn Fain has blamed these failures on past corruption within the union itself, coziness with bosses, and disadvantageous contracts. Now, with the precedent of managing the all-encompassing strikes at GM, Ford, and Stellantis, Fain believes the union has proven that it can handle anyone, including companies like Tesla.
Of course, Tesla CEO Elon Musk has been an open criticizer of unions, and instead points to cost-cutting efforts as a necessary avenue to make EVs more affordable for consumers.
Interestingly, some Tesla facilities have already formed UAW organizing committees, with the UAW itself committing to providing whatever resources these committees may need.