Las Vegas Sun

March 28, 2024

Union concerned about wages, residency of Tesla construction workers

Tesla Special Session Sept. 11, 2014

Cathleen Allison / AP

Nevada Senate Democrats Debbie Smith and Mo Denis talk during the second day of a special session at the Nevada Legislature, Thursday, Sept. 11, 2014, in Carson City, Nev. Lawmakers are considering an unprecedented package of up to $1.3 billion in incentives to bring Tesla Motors’ $5 billion battery factory to the state.

Tesla Special Session Sept. 11, 2014

Steve Hill, with the Governor's Office of Economic Development, second from right, answers questions on the Senate floor during the second day of a special session at the Nevada Legislature, Thursday, Sept. 11, 2014,  in Carson City, Nev.  Lawmakers are  considering an unprecedented package of up to $1.3 billion in incentives to bring Tesla Motors' $5 billion battery factory to the state. Launch slideshow »

CARSON CITY — A bill to give $1.3 billion in tax breaks to Tesla requires that 50 percent of construction workers and those employed at the battery factory be Nevadans.

The Senate, which introduced the bill late Wednesday, began hearings this morning on details of the requirements Tesla must meet before the Governor’s Office of Economic Development can approve the tax credits or rebates.

One section of the bill requires that factory workers be paid an average of $22 an hour and be eligible for health insurance coverage. The bill does not require construction workers be paid the prevailing wage.

The Senate stood in recess for eight hours Wednesday while the details of the 23-page bill were worked out.

Tesla must complete an investment of at least $3.5 billion in 10 years to qualify for the tax credits and abatements. If it does not, it must return the money it received from the benefits during that period.

To be considered Nevadans, workers must have a valid Nevada driver’s license or ID card or show a vehicle is registered in the state.

Danny Thompson, executive director of the Nevada State AFL-CIO, said he’s going to be “the fly in the ointment.” He said the company could bring in out-of-state workers who could easily get a driver’s license to meet the qualifications.

He also balked at the lack of a provision in the bill that construction workers must be paid the prevailing wage.

The state labor commissioner sets the prevailing wage every year on public projects. For instance, in Storey County, where the plant will be built, the prevailing wage is $59.30 an hour for a iron worker journeyman, $45.20 an hour for a plumber-pipefitter and $28.70 an hour for a flag person.

Thompson said Tesla is being a given $1.3 billion in tax breaks and should be considered a public project requiring the prevailing wages to be paid. He’s worried Tesla will bring in out-of-state construction workers at lower wages.

The bill gives the director of the Economic Development Office the power to waive the 50 percent Nevada employment requirement if the company demonstrates it cannot find the workers for certain elements of the project. The director must conduct a public hearing before he can grant a waiver.

Thompson said he will recommend an amendment that any company that receives a tax credit or abatement of $50 million or more must pay the prevailing wage for construction workers.

Tesla estimates it will need 3,000 construction workers and 6,000 employees to build and then operate the plant.

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