Tesla (TSLA) -) told workers at its Sparks, Nev., battery factory that some hourly employees would see wage increases starting next month.
The wage increases, first reported by CNBC, involve low-end bumps to $22 an hour from $20 (10%) and high-end raises to $34.50 an hour from $30.65 (12.5%).
The automaker also said that it would streamline several employment tiers, adjusting workers making between $26.20 and $30.65 an hour up to $34.50.
Most hourly workers at the plant will be receiving a roughly 10% wage increase. Tesla did not immediately respond to a request for comment.
Related: UAW auto union targets every automaker with bold new plan
The wage increases come as a recently empowered United Auto Workers union remains keen on building its momentum, recently launching widespread organizing efforts across 13 nonunion automakers including Tesla.
The union recently won record contracts for its workers with the Big Three: Ford (F) -), General Motors (GM) -) and Stellantis (STLA) -). Since its victory, union President Shawn Fain has said he wants to expand its reach to every nonunion automaker in the U.S.
Though the pay raise is at the moment specific to the Nevada plant, it still reflects a mentality shared by several other nonunion automakers. In recent weeks, Nissan, Honda, Hyundai and Toyota have all announced some version of wage increases meant to shield against the threat of unionization.
Workers, according to the UAW, have said that the pay increases are not enough to dissuade them from attempting to unionize.
Related: Elon Musk's Tesla is facing more union problems
Labor threats abroad
Beyond threats from the UAW, Tesla has become locked in a scuffle with labor unions in Europe. In late October, workers at Tesla service centers in Sweden went on strike, seeking better conditions and better pay.
The strike has since expanded to Denmark, Norway and Finland. It has broadened beyond auto-repair workers, with 15 unions, including workers in waste management, postal, and docks and shipping, signing onto the strike.
Tesla last month told Sweden's TT News Agency: "We already offer equivalent or better agreements than those covered by collective bargaining and find no reason to sign any other agreement."
Wedbush Securities analyst Dan Ives said in a Dec. 16 note that the way Tesla handles this conflict could affect unionization efforts in the U.S.
"If Tesla gives into the unions around this ongoing dispute, it could create a growing brush fire that eventually gets to the UAW and U.S. into 2024," he said.
Contact Ian with tips via email, ian.krietzberg@thearenagroup.net, or Signal 732-804-1223.
Related: Another major legacy automaker agrees to terms in light of UAW union threat
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