Tesla is facing a new lawsuit, this time by two former employees who allege that the company is doing mass layoffs that violate US federal laws because they were not warned in advance employees affected by this measure.
Plaintiffs identified as John Lynch D Duxton Hartsfield, worked at the Tesla Gigafactory in Nevada; and both have lost their jobs in recent weeks. They claim that these objects were more than 500 people that they had lost their jobs and that the only notice they received in connection with this was an immediate termination of employment.
Thus, they claim that the Elon Musk company did not fulfill what was established Workers Adaptation and Retraining Notice Act of 1988. It states that all companies with 100 or more employees must give 60 days notice of mass layoffs or plant closures.
The intention of the former Tesla employees is for their legal representation to become a class action lawsuit representing all those who were fired by the electric car maker in May and June. They are demanding that the firm recognize payment of wages and benefits corresponding to 60 days’ notice that they claim Tesla has not complied with.
In addition, the lawyer representing Lynch and Hartsfield said Reuters than Tesla would offer a week’s severance pay to some employees; but in return they will have to sign a waiver of the right to sue the company. The legal representative is betting on filing an emergency petition to prevent the firm from continuing with said strategy.
Elon Musk confirmed layoffs at Tesla, but added nuances
Faced with a new lawsuit, Elon Musk mentioned Tesla’s staff cuts. During his attendance at the Qatar Economic Forum, the company’s CEO confirmed that they would lay off 10% of their employees. According to him, this measure will be completed within the next three months. However, he indicated that they plan to increase the number of hired employees per hour; Thus, he explained that the actual reduction in the total number of personnel of the company no more than 3.5%.
The mogul even mentioned that Tesla was “growing really fast in terms of hired labor,” but predicted that he thinks the workforce will be larger within a year, both salaried and hourly. And he did not hesitate to dismiss the representation that the ex-employees of the company made in court. “Let’s not give too much weight to a preventive statement that has no basis,” he said.
Elon Musk’s companies are going through a very difficult moment in terms of current employment. Yesterday it became known that Tesla fired employees who promoted inclusion and diversity in the company; a measure that raises concerns that the firm become hostile towards minorities. At the same time, SpaceX came under scrutiny after it learned about the dismissal of employees who sent a letter complaining about the behavior of its CEO.
Source: Hiper Textual
