“Trivial”, and in Germany it is difficult to hire

The American businessman in a speech at the Qatar Economic Forum organized by Bloomberg stated that the staff cuts will only apply to employees. In Germany, however, he cannot find employees due to low wages

Emiliano Ragoni

@
EmilianoRagoni

June 22

Complex period in the Tesla house. On the one hand, in Europe, the American company is finding it difficult to hire staff because, according to what was reported by the Reuters, which cites local unions, the American company would guarantee a lower wage than competing companies. In America, however, some former employees filed a lawsuit against Tesla claiming that its decision to carry out a “mass layoff” violated federal law, as the company did not announce the job cuts in advance. .

The American cause and the layoffs

The lawsuit was filed Sunday in Texas by two workers who said they were laid off in June from Tesla’s gigafactory in Sparks, Nevada. According to the case, more than 500 employees have been laid off from the Nevada plant. The workers argue that the company has failed to comply with federal laws on mass layoffs, which require a 60-day notification period under the Worker Adjustment and Retraining Notification Act. The requirement is to obtain class action status for all. former US Tesla employees who were fired in May or June without notice. “Tesla simply communicated to employees that their layoffs would take effect immediately,” the complaint read. The lawsuit, filed by John Lynch and Daxton Hartsfield, who were fired on June 10 and 15, respectively, calls for pay and benefits for the 60-day notice period. “It is quite shocking that Tesla is blatantly violating federal labor law by firing so many workers without providing the required notice,” Shannon Liss-Riordan, a lawyer representing workers, told Reuters. Musk, who spoke on the matter at the Qatar Economic Forum organized by Bloomberg, called the cause “trivial”. These are the words of him: “The cause has no basis. It seems that everything about Tesla gets a lot of clicks, whether it is trivial or significant. I would put the cause you are referring to in the category of trivial things.” Tesla chief executive Elon Musk said in early June that he had a “bad feeling” about the economy and that Tesla needed to cut staff by about 10%. Hypotheses that were confirmed by Musk himself during a speech at the Qatar Economic Forum organized by Bloomberg. Musk said the cuts will only apply to employees, which means a 3.5% reduction in total headcount. But there will also be other hires. However, the American businessman expressed concern over the prospect of a recession in the United States.

German wages and the difficulty of hiring staff

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In Germany, according to the country’s largest auto union, Tesla could be forced to raise wages if it wishes to reach its goal of hiring thousands of additional workers at its new factory near Berlin. IG Metall, the name of the German union, is receiving reports from Tesla staff at the Gruenheide site complaining of inadequate or unequal wages. According to the union, skilled workers earn around 20% less at the plant than rival carmakers with which IG Metall has stipulated wage agreements. Tesla’s recruitment “is not progressing as fast as expected,” said Birgit Dietze, regional manager of IG Metall. “Many people would be interested in switching to Tesla, but ultimately decide not to, not least because they sometimes earn a lot more in their current positions in other auto companies.” Tesla plans to employ 12,000 people at the Gruenheide site once full vehicle production and battery production begins. In March, the automaker said more than 3,000 people work at the plant and plans to hire thousands more in the coming months.



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