Tesla Moves to Head off Union Issues as Hertz Sells EVs

<p>Tesla's US factory workers are gearing up for pay raises, in the latest
twist in Tesla’s ongoing conflict with the auto unions. </p><p>Tesla Opens Its Wallet</p><p>Tesla, the trailblazer in the EV realm, is bumping salaries for its
factory workers, coinciding with the United Auto Workers’ (UAW) push to <a href="https://apnews.com/article/united-auto-workers-organize-campaign-nonunion-factories-d095c0749d8286c0a550cd2d69cbc089">unionize
Tesla's US plants</a> in Texas, California, and Nevada. The grapevine reveals
murmurs among workers about impending pay hikes, an anticipation tinged with
mystery as the details remain undisclosed.</p><p>Fighting the UAW</p><p>In the ongoing game between Tesla and the UAW, the "UAW bump"
is raising its head once again. This term, coined by UAW President Shawn Fain,
encapsulates the raises bestowed by big car companies upon nonunion automakers
to deter unionization. While the UAW has set its sights on various US plants,
Tesla has emerged as a pivotal battleground, alongside EV startups Rivian and
Lucid. All this comes at a time when Tesla is embroiled in a labor-related
scuffle with workers in <a href="https://www.financemagnates.com/trending/teslas-nordic-labor-storm-elon-musk-vs-the-kingdom-of-sweden/">Sweden</a>.</p><p>The anticipated pay raise covers Tesla's production workers, material
handlers, and quality inspectors and takes the form of a "market
adjustment", according to the company. The UAW recently won over 30% of the workers at a Mercedes-Benz plant
signing cards for a union vote, a crescendo following similar movements at
Volkswagen. In the broader industry melody, UAW pacts with major automakers
promise substantial pay raises by 2028.</p><p>Hertz's EV Issues</p><p>Amidst the Tesla’s union issues, Hertz's stance on EVs appears to be
taking a turn from the worse. The rental giant, initially one of those heralding
an EV future, is hitting the brakes and is <a href="https://consent.yahoo.com/v2/collectConsent?sessionId=3_cc-session_3f76345b-f961-468a-814e-58ae17e9c9cc">selling
20,000 EVs from its fleet of 50,000</a>. The company initially had plans to buy
100,000 Teslas, but ended up only buying 35,000 by October 2023.</p><blockquote><p lang="en" dir="ltr">Hertz’s fire sale is good news for shoppers seeking an affordable EV, and bad news for virtually everyone else <a href="https://t.co/f4c3yBur1H">https://t.co/f4c3yBur1H</a></p>— Bloomberg (@business) <a href="https://twitter.com/business/status/1746976310344258011?ref_src=twsrc%5Etfw">January 15, 2024</a></blockquote><p>Hertz claimed that demand for EVs was down and they’re expensive to maintain
and repair. Selling off the vehicles means that the rental giant will take a
$245 million hit due to depreciation.</p><p>With Tesla facing <a href="https://www.financemagnates.com/trending/teslas-not-so-autonomous-odyssey/">a
series of issues</a> and his ongoing disaster that is <a href="https://www.financemagnates.com/tag/twitter/">Twitter</a>, it hasn’t been
a great start to the year for Elon Musk.</p>

This article was written by Louis Parks at www.financemagnates.com.