Tesla agrees to mediation that could resolve US agency’s racism lawsuit
Sign up now: Get ST's newsletters delivered to your inbox
The lawsuit alleged that Tesla tolerated severe and widespread harassment of black employees at its assembly plant in Fremont, California.
PHOTO: REUTERS
Follow topic:
Tesla agreed to enter mediation that could resolve the US Equal Employment Opportunity Commission’s lawsuit accusing Mr Elon Musk’s electric carmaker of tolerating severe and widespread harassment of black employees at its Fremont, California, assembly plant.
In a Jan 13 filing in San Francisco federal court, the agency said it is working with Tesla to choose a mediator, and negotiations could begin in March or April.
The agency said that if settlement discussions and mediation are unsuccessful, both sides will make a proposal to the presiding judge by June 17 on what to do next. It also asked the judge to put some evidence-gathering deadlines on hold, so mediation could take priority.
Tesla and the EEOC did not immediately respond to requests for comment after business hours.
The agency sued Tesla in September 2023
It alleged that harassment at the Fremont plant included racial slurs, and displays of racist graffiti such as swastikas and nooses. Some of the graffiti appeared on vehicles rolling off the assembly line, it said.
Tesla has denied that it knew about the harassment and did nothing about it, and accused the agency of “headline-chasing”.
The Austin, Texas-based automaker has faced several lawsuits over the alleged mistreatment of workers at the Fremont plant.
It won a legal victory on Nov 17 when a California state judge said more than 6,000 black workers at the plant could not sue Tesla as a group in a class action, because many workers chosen to testify were unwilling to do so. REUTERS
