Tesla Inc (NASDAQ:TSLA) CEO Elon Musk responded to a blog written by an employee who is a pro-union agitator working on behalf of the United Automobile, Aerospace and Agricultural Implement Workers of America (UAW). Musk sent a series of private tweets to Gizmodo conveying his opinion about the employee named Jose Moran.
Tesla is not a good employer, says Moran
In the post, Moran claimed that Tesla factory workers had contacted the United Auto Workers to form a union. The blog read that many factory workers have been talking about forming a union and have reached out to the UAW for support.
In November, the company decided to raise employee base pay for the first time in a very long time, according to Moran, who claims to have been a worker at Tesla’s Fremont, California plant for the past four years. Moran stated that employees work more than 40 hours a week, including excessive mandatory overtime.
Further, the post stated that Tesla’s factory environment is conducive to injuries and that the company is paying salaries near the lowest in the automotive industry. Moran, however, says that the issue is far beyond fair pay, and issues such as poor morale, unfair promotions, high turnover and others are not only bad for workers but also affect production.
Musk accuses Moran of posting incorrect facts
Musk said, “Our understanding is that this guy was paid by the UAW to join Tesla and agitate for a union.”
Musk added that he is convinced that Moran is working on behalf of this union and not Tesla. Further, the CEO said that Tesla is a “union neutral” company.
Musk told Gizmodo that the amount of mandatory overtime, which is routine in the auto industry, is decreasing each week. Further, he added that the Palo Alto-based company is paying higher starting wages than workers who are part of UAW receive.
“Frankly, I find this attack to be morally outrageous,” Musk said.
According to Gizmodo, there is no record of any Moran working with Tesla, either on social media or on LinkedIn, suggesting that it could be a pseudonym.
On Thursday, Tesla shares closed up 2.72% at $269.20. Year to date, the stock is up almost 26%, while in the last year, it is up almost 66%.
Update:the story has been updated with comments from UAW to ValueWalk.
UAW calls Tesla allegation that worker Jose Moran is on union payroll “fake news.”
“Mr. Moran is not and has not been paid by the UAW. We would hope that Tesla would apologize to their employee, Mr. Moran, for spreading fake news about him. We can confirm that Mr. Moran and others at Tesla, have approached the UAW and we welcome them with open arms.”