As United Auto Workers (UAW) gear up to a simultaneous strike at the Detroit three carmakers, Tesla Inc TSLA CEO Elon Musk said that the EV giant pays more than the union’s demands.
What Happened: “We pay more than the UAW btw, but performance expectations are also higher,” Musk said. Several of the company’s factory techs who work on the line have become millionaires over the years from company stock grants, the CEO added.
“Tesla and SpaceX factories have a great vibe. We encourage playing music and having some fun. Very important for people to look forward to coming to work!” Musk wrote on X, formerly Twitter.
The CEO was responding to an X user who noted that Tesla is continuing its operations while legacy automakers Ford Motor Co F, General Motors Co GM and Chrysler-parent Stellantis NV STLA are all embroiled in negotiating with the UAW.
Why It Matters: UAW has said that workers from select plants of the three carmakers will stage a walkout at 11:59 p.m. ET Thursday if their demands are not met.
The union is demanding a pay hike of 40% by September 2027, amongst other amenities. However, none of the three automakers have brought forth a counteroffer that the union has agreed to even as the deadline inches close.
Photo by Frederic Legrand – COMEO on Shutterstock
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