Elon Musk apologizes for Tesla workers paid just $5 an hour by subcontractor

(Here you go, libertarians. Deregulation, flexible work-forces and limited liability. GO BUSINESS!)

from the Guardian

Tesla relied on cheap foreign labor to build a hi-tech paint shop in California, paying workers as little as $5 an hour, according to a damning report that prompted CEO Elon Musk to launch an investigation.

The electric car company used roughly 140 workers from eastern Europe, primarily Slovenia and Croatia, to build a paint shop in Fremont in northern California as part of its production of the Model 3 sedan.

Workers hired by subcontractor Eisenmann, a German-based manufacturer, received hourly wages as low as $5, which is a fraction of the prevailing wages for local sheet metal workers – $52 an hour plus $42 an hour in benefits and pensions, according to a report by the Bay Area News Group.

In response to the article, Musk tweeted, “Only heard about this today. Sounds like the wrong thing happened on many levels. Will investigate and make it right.”

In April, Tesla took in almost $10bn in pre-orders in just two days for its Model 3, which the company is marketing as its first attempt at an affordable electric car, scheduled for shipping next year.

[read more here]

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