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Salary Cut And Furloughing Staff Announced By Tesla As It Closes Factories In US

Salary Cut And Furloughing Staff Announced By Tesla As It Closes Factories In US
According to reports citing an internal email sent by Tesla on Tuesday, the company will pay for its salaried employees between 10% and 30% and furlough the rest of the workers as the company plans to suspend production at its factories in the united States until at least May 4 because of the coronavirus pandemic.
It is expected that the pay cuts will be in force until the end of the second quarter, according reports quoting the company email, which also stated that the cuts in pay for salaried employees will range from 30% for vice presidents, 20% for director-level executives and 10% for the remaining workforce. The company will implement the pay cuts and furloughs will starting April 13. According to the mail, the company will furlough until May 4 all those employees who are unable to work from home and those who have not been assigned critical onsite positions.
“While we are continuing to keep only minimum critical operations running, we expect to resume normal production at our U.S. facilities on May 4, barring any significant changes,” the email from Tesla’s human resources department head Valerie Workman read according to reports. “Until that time, it is important we take action to ensure we remain on track to achieve our long-term plans.”
“This is a shared sacrifice across the company that will allow us to progress during these challenging times,” the email read.
Furloughing of employees means that they will remain employees of Tesla but will not be given any pay for the time period that they are furloughed. Such employees however will continue to have their healthcare benefits. The email from Tesla also asked the furloughed employees to apply for unemployment benefits.
The company has also said that it will also put any merit-based actions such as equity grants on hold, Tesla said in the email to employees.
Throughout the US, there are a number of factories that are owned and operated by Tesla which includes the main assembly plant in Fremont, Calif., of the company, the Nevada gigafactory that produces battery packs and electric motors for the Model 3 and a factory in Buffalo, New York, that manufactures solar products.
Plan to halt production at its Fremont and Buffalo factories was announced by Tesla on March 19. The company didn’t say when it expected to restart production at that time. The company had planned to halt production at its Fremont factory starting March 23 which was a week after a shelter in place order went into effect in Alameda County because of the coronavirus pandemic.
However, at the Fremont factory, which under normal circumstances employs more than 10,000 people, the company has continued with some basic operations that helps to support the charging infrastructure of the company and what is described by the company as its “vehicle and energy services operations”. Currently, about 2,500 workers are still working at the plant.

Christopher J. Mitchell

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