Elon Musk says Tesla unionization 'isn’t likely to occur'

TESLA GIGAFACTORY
Billionaire Elon Musk, chief executive officer of Tesla Motors Inc., left, speaks as Jeffrey Straubel, chief technical officer and co-founder of Tesla Motors Inc., looks on during a press event at the company's Gigafactory in Sparks, Nevada on July 26, 2016.
Troy Harvey
Jennifer Elias
By Jennifer Elias – Technology Reporter, Silicon Valley Business Journal
Updated

The Tesla CEO on Wednesday's earnings call said why he doesn't think the unionization is going to happen.

CEO Elon Musk on Wednesday said unionization probably won't happen at Tesla due to a number of facts he says run counter to the United Automobile Worker's claims earlier this month.

Responding to a question on an earnings call about unionization efforts at Tesla's Fremont auto plant, the CEO said that the United Automobile Workers union effort has been “quite strong” in approaching Tesla employees but that allegations about working conditions are unfounded.

Join the conversation: Follow @SVbizjournal on Twitter, "Like" us on Facebook and sign up for our free email newsletters.

After initially calling unionization efforts at Tesla "morally outrageous," Musk last week promised to investigate claims of injuries and excessive overtime at the company's Fremont factory by an employee.

The employee, Jose Moran, earlier this month told reporters that he supports unionization efforts and was talking to the UAW, but denied being paid by the union. Moran said he was concerned about mandatory overtime that was required of workers and claimed that Tesla management forced people to work six days a week at 12 hours or more a day — a grind that led to preventable accidents.

Earlier:

On Wednesday's call, Musk again referred to Moran as a “de facto” union employee adding, "a lot of people have been approached by them (UAW)."

Musk said he'll publish his findings about Tesla working conditions in "the next day or two," but gave investors a brief preview on Wednesday saying Tesla’s injury rate is less than half of the industry average, contrasting allegations made by unionization supporters.

"There were also allegations that people aren’t paid enough but in, fact, they are paid the highest in the industry if you include equity, which you should," Musk said. "There are really only disadvantages for someone to want the UAW," Musk continued. "Tesla unionization isn’t likely to occur — no."

Related Articles