On Tuesday, Bloomberg reported that Tesla will not be providing its employees with yearly merit-based stock awards.
Tesla did not immediately respond to requests for comments.
The news of Tesla’s decision came following the November announcement by the United Auto Worker’s union, that said it would begin launching a first of its kind drive to organize the entire auto sector in the United States, including Tesla, following its successful negotiation of all new contracts with the Big Three Detroit automakers.
The news was delivered to Tesla’s salaried employees by the company’s managers, according to the report, which stated that four employees which worked in different departments said to Bloomberg News that the move appeared to them to be widespread.
The report went on to note that workers were still given adjustments to their base salaries as well as cost of living adjustments.
In addition, the report said that some Tesla employees which had reached the end of their four-year vesting cycle received “refreshers,” which were designed to keep their total compensation competitive.