In the Anglo-Saxon language area, a word is currently making a career that most of those affected should never have heard of before: furlough, roughly translated forced vacation, but the result is more comparable to German short-time work benefits. In the current corona crisis, many companies in the United States and Great Britain use this instrument, and as is now known, Tesla is one of them. At the same time, the company announced lower wages for employees who were not on leave – a significantly higher percentage in management than among ordinary employees.
Hundreds of Tesla temporary workers already gone
The blog Electrek reports, citing an internal email from the Tesla HR manager to all employees, who is said to have been dispatched on Tuesday. Tesla continues to do minimal, indispensable activities, it says, and while doing so, the cost would have to be reduced. It had been reported last week that a temporary employment agency had announced the end of the job to hundreds of Tesla employees.
It was initially unclear what will happen to the rest of the Tesla workforce during the coronavirus forced break. The email clarifies this now. Accordingly, the employees who are not currently required are not given notice, but are instead sent on unpaid forced leave. As the HR manager explains, they are still employed by Tesla and have health insurance, but can also apply for US unemployment benefits. Anglo-Saxon companies had previously announced that they would use the furlough tool, which had previously been used almost exclusively by government employees in the United States in government budget crises.
High cut in Tesla management
In addition, Tesla’s head of human resources informed that there should be significant salary cuts for current US employees. She named 30 percent for the top hierarchy from Vice President, 20 percent for Directors and 10 percent for ordinary employees, reports Electrek. Such savings measures are also planned for employees outside the USA, adapted to local regulations, and will soon be announced by the respective tours. A cut should therefore also come to German Tesla employees.
The described savings package at Tesla should come into force next Monday. According to the email, it is intended that it will only be valid for three weeks – the date for the resumption of normal operation is specified as May 4th. As Electrek reports, this could be due to the proposed end of official exit restrictions in California – although it has already been said that they could also be extended.
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