A labor dispute led hundreds of workers to walk off the job Monday at Tesla Motorsβ Gigafactory construction site, in protest of the company hiring out-of-state contractors at a lower rate.
βThere have been Nevada construction workers on the job who have been displaced by these contractors and workers from out of state,β said Todd Koch, president of the Building and Construction Trades Council of Northern Nevada. βWorkers on this site β non-union and union alike β have watched this happen over time, and theyβre saying, βAre we next?'β
Union and non-union plumbers, carpenters, electricians and more totaling about 350 left the site, reported the Associated Press, and 100 picketed near the $5 billion battery factoryβs main gate. An average of 894 workers occupy the site weekly, according to a December report by Tesla.
βTheir issue is not with how Tesla treats its workers,β said a spokesperson. βTheir issue is that of the many third party contractors that are involved in the construction of the Gigafactory, many are union but the one at issue is not.β
Tesla, in exchange for about $1 billion in tax breaks, is required to maintain a worker ration of at least 50 percent Nevadans, unless they encounter a shortage of skilled labor. Koch and his union, however, attempted to bump the requirement up to 100 percent.
Although the automaker maintains that they are exceeding the 50 percent requirement, union officials claim that New Mexico-based Brycon Corp. is having an increased presence on the job site.
A Tesla spokesperson said that the union is βclaiming that this contractor is somehow favoring out of state workers. In reality, more than 50 percent of the workers used by this contractor and more than 75 percent of the entire Gigafactory workforce are Nevada residents, demonstrating the projectβs strong commitment to Nevada.β
In a December audit, the Nevada Governorβs Office of Economic Development found that the site employed 68 percent Nevadan workers.
According to Fortune, the walk-off is just the beginning of the dispute. βWeβre considering our options,β said Koch. βBut I can say, this is just the opening salvo and weβre not going to give up. Tesla hasnβt heard the last from us.β
Union officials are still considering whether to continue the protest into Tuesday or if they will file a complaint with the U.S. Labor Department.
Do you think workers are right to be concerned over out-of-state workers? Will the disagreement take weeks or months to resolve, or could it be settled within the week?
Comment below or tweet @KatieeMohr.