Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Worker testifies that Tesla stopped him from organizing union

Published 06/11/2018, 10:17 PM
Updated 06/11/2018, 10:17 PM
© Reuters. FILE PHOTO: A Tesla dealership is seen in West Drayton, just outside London

By Salvador Rodriguez

OAKLAND, Calif (Reuters) - A Tesla Inc (O:TSLA) employee organizing a union was asked by a supervisor and company security guards to leave the factory after handing out pro-union flyers, the worker said at a National Labor Relations Board (NLRB) hearing on Monday over whether Tesla had violated federal safeguards for employee activity.

The NLRB general counsel brought the case before a board administrative law judge after receiving complaints from three Tesla workers and the United Automobile, Aerospace, and Agricultural Implement Workers of America (UAW).

If Tesla loses, the company could be required to notify its employees that it was found to be committing unfair labor practices, a victory for union organizers.

The case comes as Tesla has struggled to ramp up production of the Model 3, a sedan intended for volume production that is key to the company achieving long-term profitability.

Edris Rodriguez Ritchie, an attorney for the NLRB, said Tesla asked workers to sign confidentiality agreements that were "overly broad" in preventing them from publicly discussing their working conditions.

Tesla has denied the allegations and described them as an effort to make Chief Executive Elon Musk look bad.

Michael Sanchez, who has worked at Tesla since 2012 and is currently on medical leave, said he was asked to leave by security guards and a supervisor while handing out leaflets to colleagues outside a Tesla facility in February 2017.

"What we see is a very heavy-handed, anti-union campaign that's affected all levels of workers' everyday lives," said Margo Feinberg, attorney with Schwartz, Steinsapir, Dohrmann & Sommers in her opening remarks for the UAW, which supports the NLRB counsel in the case.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Speaking on behalf of Tesla, Mark Ross of Sheppard, Mullin, Richter & Hampton LLP listed about two dozen other allegations against the company that were found to be without merit and dismissed.

"The fact of the matter is that Tesla is a company that values its employees," Ross said in his opening remarks.

In a series of tweets in May, Musk said he had not done anything to prevent unionizing efforts by workers. "Nothing stopping Tesla team at our car plant from voting union. Could do so tmrw if they wanted," Musk tweeted on May 20.

Hearings for the case are scheduled to continue through Thursday and resume in late September. Judge Amita Tracy is expected to deliver her judgment sometime after that.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.