Tesla is accused of keeping employees in Buffalo, New York, from unionizing, according to a complaint filed by the National Labor Relations Board (NLRB).
An NLRB Complaint Alleging Tesla of Union-Busting
On Tuesday, Linda Leslie, the NLRB's regional director for Buffalo, filed a complaint alleging that Tesla "promulgated and maintained" an acceptable use policy for workplace technology in 2023 that purportedly aimed at discouraging employees from unionizing or engaging in concerted activities, following complaints from members of Workers United.
CNBC acquired a copy of the complaint via a Freedom of Information Act request. The complaint outlined restrictions on Tesla employees, prohibiting activities such as recording, unauthorized soliciting or promoting, and creating channels and distribution lists.
The NLRB also alleges that the policy had the impact of infringing upon employees' rights, such as restraining and coercing employees, guaranteed under the National Labor Relations Act, which generally safeguards workers' rights to discuss organizing, join a union, and collectively negotiate for improved pay and working conditions.
Tesla's Buffalo Plant
The Tesla Buffalo plant was initially intended for manufacturing solar panels but has recently been repurposed to assemble electric vehicle charging equipment and accommodate a team of AI software data labelers.
The Buffalo plant saw job cuts last month in a broader restructuring effort at Tesla. As per a WARN notice filed in the state, Tesla laid off 285 employees in New York, primarily at the Buffalo factory, as the company reduced thousands of jobs globally following a decline in EV sales in the first quarter.
Legal Disputes Concerning Tesla Over The Years
The new claims contribute to a growing list of legal disputes between Tesla, its employees, and government agencies regarding the electric carmaker's employment practices, including other cases alleging illegal anti-union behavior and a series of lawsuits concerning race discrimination.
Tesla and its CEO, Elon Musk, have long opposed unions and have been found to have engaged in anti-union activities. In 2021, the NLRB found Tesla guilty of union busting when it fired a union activist and when Musk's 2018 tweet questioned why Tesla employees would vote for a union, suggesting they would lose out on stock options and pay union dues for no apparent benefit. An administrative court instructed the CEO to delete the post. Despite Tesla's challenge, the request for review was denied. The post remains on Musk's X account, where he has 182.7 million followers.
Tesla has also encountered labor issues in Europe. Swedish service technicians initiated a strike last year that persists to this day, with the labor group intermittently allowing some authorized work. Employees in Sweden, where most of the workforce is unionized, are also pushing for a collective bargaining agreement with Tesla.
An administrative judge will initially hear the case in July, whose decision can be appealed to the five-member labor board and then to a federal appeals court.
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