Tesla is facing a backlash from Gigafactory Shanghai workers who complain that their performance bonuses were reportedly cut over an accidental death at the factory earlier this year.
The Gigafactory Shanghai has become a critical asset for Tesla.
The factory ramped up production quickly, becoming Tesla’s highest-performing factory with a capacity of over 750,000 electric vehicles per year.
The plant’s efficiencies also allowed the automaker to benefit from high margins last year and left room for price cuts earlier this year.
The factory is doing very well by most reports, with some workers expressing concern that their bonuses have been cut this quarter.
These Tesla workers have expressed their concerns on Chinese social media and even on Twitter, which is officially blocked in the country:
@elonmusk @Tesla_Asia
请关注特斯拉上海工厂一线工人的表现被任意扣除Please note that performance of frontline workers at Tesla’s Shanghai factory is arbitrarily deducted
— a bc (@AFeiywu) April 16, 2023
According to a Portal report, Tesla workers were told their performance bonuses would be cut and the reason given was “due to a safety incident” at the factory in the first quarter.
The report links the accident to the death of a Tesla worker at the factory’s workshop on Feb. 4, which was reported to the Pudong local government.
A government investigation concluded that the deceased worker was directly responsible for the accident, but that Tesla’s safety management also “indirectly contributed to the accident.”
In China, it is not uncommon for compensation to be reduced as a result of a security incident, but it is generally associated with a security bonus rather than a performance bonus.
The reduced performance bonus was reportedly worth around 2,000 yuan (US$291).
Electrek’s take
Before you ask why all the fuss about less than $300 in bonuses, consider that Tesla Giga Shanghai production workers earn about 110,000 to 120,000 yuan (about $16,000) a year, including bonuses and overtime pay.
So it makes a big difference. And yes, it’s odd to reduce the performance bonuses in a safety accident, especially since the plant has achieved record performances.
We do not have the exact circumstances of the fatal accident, but in general, accidents at work are more common when a company pushes workers to perform at their best.
While obviously nobody wants to incentivize poor security that leads to death, it’s also a little counterintuitive to incite them to perform better and then punish them when they succeed but are so focused on the achievement that this may have led to security problems.
If they want to put their money in the balance, they should encourage safety with a safety bonus that is greater than the performance bonus.
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