Employees in Gigafactory have protested against low wages and the recruitment of workers from outside Nevada.
Tesla Motors is collaborating with Panasonic to establish a huge “Gigafactory” outside Reno in Nevada. On February 29, 2016, around 100 construction employees of the American electric carmaker moved out of the factory to protest against the hiring of employees from outside the state – across the border of Nevada.
Reno Gazette Journal reported that the local union of builders is angry for the work done by workers from Arizona and New Mexico on the venture. Adding to the difficulties, workers from outside the state are those who aren’t members of the union, the publication noted.
While recruiting across the state is rarely as controversial as hiring foreign employees, it does matter in Nevada because Nevada provided tax incentives worth $1.4 to CEO Elon Musk to establish the battery manufacturing facility in 2014. Under the agreement negotiated by Governor Brian Sandoval – whose name recently floated as a possible nominee of the Supreme Court – requires at least half of the employees working on the project to be the residents of the state.
(Tesla’s Gigafactory is under construction on a land developed by Lance Gillman, owner of a legal firm, Mustang Ranch brothel, in the state). The automaker states the battle is between fought between a contractor and the union, and that domestic workers are more than the 50% limit.
The electric carmaker hopes that in 2020, the factory will reach full production, producing sufficient batteries to power half a million vehicles hoped to produce yearly by then. The name of the factory reflects the ambition of the organization to develop sufficient batteries in one year to generate 35 gigawatt-hours of power.
One billion watts make up a gigawatt. According to reports of Daily Caller, officials of the worker Union at the Gigafactory said 350 employees walked out of the facility due to low hourly wage from $12 to $14. The union has been repeatedly complaining that Tesla outsourced some jobs to a non-union contractor.
The facility will manufacture lithium-ion batteries and is expected to cost $5 billion. The plant will probably start operations by 2017. Tesla only sells a few models and annual profit is not recorded by it.
Musk’s company, SolarCity, also received much money to enter Nevada, but withdrew from the region in December following the development of policies by the state government against the American energy service provider.
In other news, The Salt Lake Tribune reported that Tesla will try to make the Legislature of Utah realize that it must kill the so-called “the Tesla bill” claiming that the move is actually adding to the problems of the organization than solving it.