Tesla Name Low cost-Labor Allegations 'Completely Unacceptable'

Tesla’s popularity got here beneath hearth over the weekend after a report from The Mercury News claimed the automotive firm had used low cost overseas labor to construct considered one of its new amenities.

The Mercury Information alleged that Tesla contractor Eisenmann and subcontractor ISM Vuzem employed greater than one hundred forty staff from Japanese European nations and paid them as little as $5 an hour to construct a automotive-portray facility in California.

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One such employee, Gregor Lesnik, is trying to sue his employers after reportedly falling three tales whereas constructing the Tesla facility and breaking each his legs.

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Tesla Call Cheap-Labor Allegations 'Totally Unacceptable'

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Tesla, which is understood for its greater-than-common hourly wages, stated that if the claims towards its contractors are true, they’re "completely unacceptable."

"Assuming the article is right, we have to do proper by Mr. Lesnik and his colleagues from Vuzem," Tesla wrote on Monday. "This isn’t a authorized situation, it’s a ethical challenge."

Response to a Mercury Information article about an damage on our premiseshttps://t.co/3BFgV6Hfia

— Elon Musk (@elonmusk) Might sixteen, 2016

Within the Monday assertion, Tesla denied information of its contractors’ potential underpayment of staff. Representatives declined to remark additional.

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Neither Eisenmann nor Vuzem instantly responded to CNBC’s request for remark.

Tesla says numerous authorities investigated Lesnik’s incident and located it not answerable for compensation or accidents. Nevertheless, the corporate famous that it’ll "do the correct factor" if the claims are true. CEO Elon Musk took to Twitter, saying he discovered of the incident on Sunday.

@margotroosevelt Solely heard about this right now. Sounds just like the mistaken factor occurred on many ranges. Will examine and make it proper.

— Elon Musk (@elonmusk) Might sixteen, 2016

"Morally, we have to give Mr. Lesnik the good thing about the doubt, and we have to care for him. We’ll make certain this occurs," Tesla stated, within the assertion.