WSJ - Detroit automakers entered labor talks at cost disadvantage to Tesla
Meeting UAW's initial demand would increase total average hourly compensation from $66 to $136 an hour vs. $45 at Tesla, according to Wells Fargo. They are asking for a 32-hour work week but annualized on a 40-hour week that would be approximately $283,000 in total compensation.
A key difference in compensation is TSLA employees tend to get cheap options that can increase a lot in value if the stock moves up.
“Competition is code word for race to the bottom, and I’m not concerned about Elon Musk building more rocket ships so he can fly in outer space and stuff,” Fain told CNBC on-air Wednesday.
A key difference in compensation is TSLA employees tend to get cheap options that can increase a lot in value if the stock moves up.
“Competition is code word for race to the bottom, and I’m not concerned about Elon Musk building more rocket ships so he can fly in outer space and stuff,” Fain told CNBC on-air Wednesday.
Musk won before the strike began early Friday. He won before negotiations started two months ago. From the get-go, General Motors, Ford Motor and Chrysler parent Stellantis were expected to spend more on wages because of the union’s pressure. The question is just how much of an increase, and so far their offers haven’t pleased the union, igniting this past week’s work stoppage.
Whatever happens, more money surely will be spent. Any wage increase further advances Tesla’s already tremendous cost advantage in EVs over its older U.S. peers, which are contending with generations of legacy expenses while trying to steer a costly transition to electric from gas-powered vehicles.
The National Labor Relations Board has ruled that Tesla violated U.S. labor law in its handling of the matter, including statements by Musk that were considered threatening when he tweeted that hourly workers would lose stock options if they joined the UAW. An appeal by the company, which has denied wrongdoing, is pending.
Musk has suggested that employee stock options make his factory workers the highest compensated in the industry, saying “quite a few” line workers have become “millionaires over the years from company stock grants.” Options allow workers to buy stock at a certain price after working at the company for a set amount of time.
Whatever happens, more money surely will be spent. Any wage increase further advances Tesla’s already tremendous cost advantage in EVs over its older U.S. peers, which are contending with generations of legacy expenses while trying to steer a costly transition to electric from gas-powered vehicles.
The National Labor Relations Board has ruled that Tesla violated U.S. labor law in its handling of the matter, including statements by Musk that were considered threatening when he tweeted that hourly workers would lose stock options if they joined the UAW. An appeal by the company, which has denied wrongdoing, is pending.
Musk has suggested that employee stock options make his factory workers the highest compensated in the industry, saying “quite a few” line workers have become “millionaires over the years from company stock grants.” Options allow workers to buy stock at a certain price after working at the company for a set amount of time.
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bullrider_21 : That's why Tesla doesn't allow its workers to join the union to prevent such problems. Its China employees work very hard. I doubt they get options.
bullrider_21 : The strikes are unlikely to benefit Tesla much unless it lasts more than a few weeks.
ZnWC : UAW Strike: Why Tesla May Emerge as the True Winner
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Teslaconomics OP bullrider_21 : I think so