Union says gigafactory construction delayed; Tesla disputes claims

By Jason Hidalgo, The Reno Gazette Journal

Friday, March 6, 2015 | 4:51 p.m.

Construction has been delayed at Telsa Motors' gigafactory site east of Reno, according to a couple of union job postings.

Earlier this year, the national job board for the International Brotherhood of Electrical Workers updated its listing for "Project Tiger" — the initial code name for the gigafactory — to indicate a change in demand for electricians.

"The Tiger Project has been cut back by 80% at this time," the IBEW post said. "This is all subject to change."

Meanwhile, the local branch of the union in Reno also posted a message about the gigafactory on its job referral page. Several members said the message initially mentioned "Project Tiger" before it was updated.

"The major project in the area has been delayed at this time," said the post on the IBEW Local 401 site. "Further updates will be posted as soon as we know more."

The posts on both sites remain unchanged as of Thursday, March 4.

The common thread attributed to the delay is a change in design plans for the gigafactory, which started ramping up construction late last year. As a result, sources familiar with the situation at the site consider the current reduction more of a short-term hiccup that should not affect the project long term.

A spokesperson for Tesla Motors declined to comment on whether there has been a change in plans for the site when reached by phone, only saying that the project is fully mapped out and funded. Another spokesperson said claims about delays at the gigafactory site are flat out inaccurate.

"It would be incorrect to say that construction is delayed at the gigafactory site," said Tesla spokeswoman Alexis Georgeson. "We are on schedule."

Citing a non-disclosure agreement with Tesla Motors, a representative for IBEW Local 401 declined to comment about the postings when reached by the Reno Gazette-Journal by phone.

The Building & Construction Trades Council of Northern Nevada also declined to provide specifics about the situation at the gigafactory, citing the non-disclosure agreement as well.

"I can confirm that there has been a reduction in hours and that's all I can say," said Paul McKenzie, secretary and treasurer of the Building & Construction Trades Council of Northern Nevada.

The reported reduction is not affecting all aspects of labor. The Iron Workers Local 118 has done plenty of work at the gigafactory location, including the erection of a $15 million steel structure on the site that started in December. Iron Workers Local 118 declined to comment on the work situation on the site due to a non-disclosure agreement with Tesla. Several sources familiar with the project, however, say changes in plans are part of construction, especially for a facility as large as the gigafactory. Building a project in phases also means the need for various job crews can shift as demand changes, with certain phases of construction requiring more iron workers than electricians, for example.

The electricians union, meanwhile, lists 78 local members as having signed up for the inside journeyman wireman position for the gigafactory, describing their prospects as "promising." It also has 379 out-of-state members signed up as well, although their prospects are described as "slow." In order to receive $1.3 billion worth of incentives, Tesla is required to hire at least half of its construction workers from the state of Nevada.

Landing Tesla's gigafactory has been described as one of the biggest wins in economic development history. Activity at the gigafactory site is already being credited for helping boost the Reno area's construction industry, which lost more than 70 percent of its workforce during the recession.