The American electronic automobile manufacturer, Tesla Motors, has rejected the reports that it intends to pay an hourly wage rate of $25 to its battery-manufacturing factory workers in Reno, Nevada. Tesla news affirmed that the management of the company has never declared the amount to be paid to plant workers. It further stated that it had submitted an application to the authorities of Nevada last year, which includes estimates of average wage rates for its skilled workforce. This statement is sufficient to indicate that the company has not yet decided the wages.
Experts highlights that the reported wage rate would exceed the wages offered by all automobile producers. The organization is currently paying a starting wage rate of $17 per hour to its workers who assemble Model S sedan in Fremont, California. Tesla news today informed that the business is engaged in the process of constructing a massive battery plant in the desert located in the state, and as per market sources, plans to employ 6500 workers in the plant, which would play an important role in boosting the economy of the region.
The Chief Executive Officer of the Economic Development Authority of Western Nevada, Mike Kazmierski, had stated that the Tesla would pay a wage rate of $25. This statement poses a threatening message to the rivals of the company. A number of labor experts have begun to share their views regarding aforementioned rate. One of those experts include Californian labor economist, Harley Shaiken, who stated that this rate has been designed to disorganize the labor unions. The economist anticipates that higher wage rates would minimize the bargaining power of the unions.
It is believed that the union’s force is determined by the extent to which their members need them. Increased wages tend to decrease their dependence on the management of the trade groups. Thus, the payment of the rate would threaten the interests of the union leaders who have been elected to defend the workers.
Tesla Motors news informed that the mentioned wage rate would not affect the negotiations of the United Automobile Workers Union, as per some labor experts. Under the agreement of the Union, employees are hired at a wage rate of $15.78, which is ample to scare other automakers whose skilled labor would be attracted towards it. The company is currently paying more than its battery-manufacturing competitors, including LG Chem and General Motors, which proves its capability to pay the wage rate.
Economic experts believe that wage rate would contribute in improving an average worker’s standard of living. Now, one could say that Mr. Mike’s statement has played its role in fearing the rivals of the electric car-maker.