An increasing number of unions and labor leaders have expressed support for a California bill that, if passed, would force companies like Elon Musk’s Tesla to reveal information on employee wages and working conditions in their factories and plants.
At this point, to say that Musk has faced criticism over the working conditions in his Tesla factories would be an understatement. Numerous reports, including an in-depth investigation by The Guardian, have alleged that Tesla, despite Musk’s protestations, doesn’t have its workers’ best interests at heart.
A 2018 report by The Center for Investigative Reporting found that Tesla, despite claiming that it significantly lowered the number of injuries that occurred in its California plant, was underreporting injuries to make the company look better. The report stated that according to a former Tesla safety professional who wished to remain anonymous, “the company systematically undercounted injuries by mislabeling them.”
In May 2020, amidst COVID-19 restrictions, Musk announced that Tesla would be reopening its plants in California. “Tesla is restarting production today against Alameda County rules,” Musk said via Twitter. “I will be on the line with everyone else. If anyone is arrested, I ask that it only be me.”
Despite Musk’s seemingly magnanimous plea to be the sole bearer of the consequences for reopening early, The Guardian obtained an email in which Tesla employees were warned: “If you do not feel comfortable coming into work, you can stay home and will be on unpaid leave. Choosing not to report to work may eliminate or reduce your eligibility for unemployment depending on your state’s unemployment agency.”
Additionally, in 2019, a judge ruled that Musk had violated federal laws by targeting union activity in his Tesla plants. Among the 12 incidents that the judge ruled were illegal was a tweet in which Musk suggested workers would lose stock options if they unionized.
“Nothing stopping Tesla team at our car plant from voting union,” reads Musk's tweet. “Could do so tmrw if they wanted. But why pay union dues & give up stock options for nothing?”
A possible step toward transparency
Last year, labor leader and California State Sen. Maria Elena Durazo (D-Los Angeles) introduced SB-749. The bill would close a loophole in the California Public Records Act that allows private companies or contractors that receive government subsidies to hide employee information by claiming that information constitutes a trade secret.
To be clear, the bill would not force companies to reveal trade secrets; it simply clarifies that “records of wages, benefits, working hours and other employment terms and conditions of employees” are not state secrets, and are therefore not exempt from public scrutiny, according to the bill’s text.
“SB-749 is a common-sense measure that will ensure all information supplied by companies about job creation, job access and job quality… is transparent and accessible to the public,” said Duraza in a statement to the New Republic. “We need to increase access to public information about public contracts and provide transparency in how hundreds of millions in taxpayer dollars are being spent.”
“To achieve fully the goals of responsible contracting and purchasing, access to key information is vital,” stated Durazo in a press release. “SB-749 is an opportunity for California to be a leader in protecting jobs and jobs quality.”
Among those who support the bill are the Alliance for Community Transit (ACT-LA), the California Labor Federation, Communications Workers of America (CWA), the International Association of Machinists, Jobs to Move America and United Auto Workers (UAW).
Additionally, numerous other organizations and labor leaders throughout the nation have also voiced their approval of the bill, a sign of growing support for labor reforms across the country.
“Tesla has a long track record of low-road labor standards,” said Jobs to Move America in a written statement on its website.
In August, UAW lent its own support to the campaign for the bill. “Tesla is a perfect example of what can go wrong when we give public dollars to private companies with little accountability… We urge California lawmakers to pass SB-749 and reaffirm our commitment that public dollars serve the public good,” UAW wrote.
Democratic Rep. Chuy Garcia of Chicago shared information about the bill on Twitter, adding, “Elon Musk thinks he’s pretty innovative, but exploiting employees for profit is at least as old as capitalism and it certainly isn’t a trade secret. He should drop his ridiculous opposition to transparency.”
Of course, Tesla isn’t the only private company that receives government subsidies in California. SB-749 would increase transparency for any such company, and if passed, could potentially pressure other states to do the same.
California labor woes
Despite the seemingly widespread support for reform, progressives are facing an uphill battle with respect to labor legislation.
Earlier this year, Durazo sponsored SB 1399—a garment workers protection bill that would have required garment workers to be paid an hourly wage rather than being paid per garment—but the bill died in the Assembly.
In September, Gov. Gavin Newsom vetoed the Durazo-authored SB 1257, which would have extended workplace protections to domestic workers, including house cleaners, gardeners and caregivers.
The recent election has raised further concerns for progressives as California voters rejected numerous progressive-backed ballot measures at the polls.
In particular, Prop 22—the ballot measure which moved to classify rideshare app-based drivers as contractors rather than employees—was overwhelmingly opposed by labor advocates, leaders and unions. The measure passed with almost 60 percent of the vote.
For all of California’s reputation as one of the more progressive states, labor protections continue to falter, casting serious doubts as to whether SB 749 will pass.
The California state legislature will reconvene from recess in January. SB-749 is on the docket for consideration.
Tesla did not respond to a request for comment.
