Tesla is receiving backlash from workers at its Shanghai plant and Chinese social media users over reports that employee bonuses were cut after an employee was killed in an accident at the electric vehicle factory.
Reuters reported first on dissatisfaction among workers at Tesla’s Shanghai factory who had their bonuses cut after the fatal incident.
The news agency, citing an April 12 report by the Pudong local government, said there was a mechanical accident at the plant’s welding shop on February 4, killing one worker.
The Tesla Gigafactory in Shanghai employed around 20,000 people. Two employees at the plant told Reuters they had been told their quarterly performance bonuses would be reduced, with management citing a “safety incident” when asked about the reasons for the bonus cuts.
Reuters also reported that employees had taken to social media to appeal to Elon Musk and his mother, model Maye Musk – who has gained a following in China – to change employee bonuses, which have been hurt as a result of the incident.
“Please note that the performance of frontline workers at Tesla’s Shanghai factory is being arbitrarily deducted,” said one Twitter user wrote in a tweet to Musk and Tesla Asia’s official account.
The performance bonus cuts also became a topic of discussion in Chinese forums such as Baidu Tieba.
A Baidu user who said he was employed at the Shanghai factory wrote in a post Sunday that all front-line workers at the facility had more than 2,000 yuan ($291) taken from their performance bonuses after an accident.
wealth was unable to independently verify their claims.
“Malicious” pay docking
The worker called the docking of the bonus payments “malicious” and said they were “helpless” and “shocked and disappointed” by the move.
“Working at the Tesla factory is by no means an easy job,” they said. “From the first trial to the last trial, [everything] must be very strict and meticulous – all work must be carried out in accordance with the company’s standards to ensure the quality and safety of every Tesla car.”
The worker argued that cutting bonuses would unfairly shift responsibility for the accident to those not involved, saying the decision would dampen staff morale.
“Such an approach makes us question whether the company really values its employees. Can we trust a company if it shifts the responsibility to frontline workers?” they questioned. “Employees will feel that the company has no value for their work, even if they invest a lot of time and energy in their work.”
Another user, who claimed to work at Tesla’s Shanghai plant, announced that he now plans to leave the company and seek a job with a Chinese competitor BYD.
“This is outrageous,” wrote another in a thread discussing the controversy. “Obviously it is because the safety production management is not in place and the workers’ money is being deducted? Management should have withdrawn money.”
Tesla representatives did not respond wealth‘s request for comment.
Tesla CEO Musk made headlines last year when he praised the Chinese work ethic and praised factory workers in the country for “the burning of the 3 o’clock oil.”
Such was the case last year when Shanghai was under strict COVID lockdown measures reported that employees at the on-site Tesla factory in Shanghai slept and worked 12-hour shifts six days a week.
Earlier this month, Tesla announced plans to open a megafactory in Shanghai capable of producing 10,000 megapacks — powerful batteries that serve as energy storage units — per year.
Our next Megafactory will be in Shanghai 🇨🇳 – able to produce 10,000 Megapacks per year pic.twitter.com/KlVGq5gYOg
– Tesla (@Tesla) April 9, 2023