The UAW’s previous attempts in 2017-2019 to organise Tesla’s Fremont factory and other locations were unsuccessful. Back then, the union accused Tesla of employing unfair tactics to discourage unionisation efforts, including:
Hindering distribution of union materials: Tesla allegedly restricted workers’ access to union information.
Dismissing pro-union employees: The UAW claimed Tesla targeted workers who supported unionisation for dismissal.
Coercive social media activity: A specific tweet by CEO Elon Musk caused controversy.
The tweet stated that while Tesla wouldn’t prevent workers from unionising, Musk believed they wouldn’t choose to do so due to the potential loss of stock options and the need to pay union dues. This was interpreted as a threat to remove stock options as a benefit if workers unionised.
The National Labor Relations Board (NLRB) ruled in the UAW’s favour, finding that Tesla violated labour laws. The NLRB ordered Tesla to cease these activities, including the removal of the aforementioned tweet. However, the ruling lacked punitive measures for Tesla or its executives. Although a court upheld the decision, Tesla later appealed the case to the Fifth Circuit court.
Meanwhile, the UAW achieved a significant victory with the Big Three automakers – Ford, GM, and Chrysler. A successful strike led to substantial gains for union members at these companies. Emboldened by this success, the UAW refocused its sights on non-unionised US automakers, including Tesla. Tesla’s recent redundancies, impacting 15-20% of its workforce, have provided the UAW with fresh ammunition.
The way Tesla handled the redundancies added fuel to the fire. Many employees were abruptly terminated via email, some even mid-shift or during their commute. In some cases, individuals were let go shortly after relocating for the job. This approach reportedly caused significant morale issues at Tesla.
Capitalising on this situation, the UAW has been spotted distributing flyers in support of unionisation at Tesla’s Gigafactory in Texas, a move that suggests the union is actively trying to leverage worker discontent to gain traction in its organising efforts. Whether the UAW’s renewed push will be successful remains to be seen. However, Tesla’s recent actions have undoubtedly created fertile ground for the union to make its case to Tesla’s workforce.