Tesla Inc. to face lawsuit over alleged racism towards two employees in California factory

Tesla Inc.’s attempts to brush claims of racial hostility under the rug were dismissed by a federal judge, paving the path for a trial on May 20, 2020. The electric car manufacturer was accused by two former employees of not dealing with racist behavior at its California factory where they had worked previously.

Tesla Workers Claim They Faced Racist Treatment During Their Tenure

The factory in question, which employs more than 10,000 workers, included Owen Diaz and his son, Demetric Di-az – an elevator operator and production associate, respectively – who claimed that during the years 2015 and 2016, they were confronted with “severe and pervasive racial harassment”.

U.S. District Judge William Orrick said that the plaintiffs, who were black, could pursue the claim that Tesla allowed and did not take the necessary measures to stop the racist behavior. According to the judge:

“The n-word is perhaps the most offensive and inflammatory racial slur in English, a word expressive of racial hatred and bigotry. This case will proceed to trial.”

He also said that Diaz could also take the staffing agency to the court which had assigned him to the factory.

Tesla Is Not The Only Automobile Company To Face Such Allegations

Tesla and its lawyers refused to comment but said in court papers that it “did not hesitate” to rebuke racist behavior at the Fremont factory. Tesla also maintained that there was no proof of “oppression, malice, or fraud”.

Diaz and his son worked at the Tesla factory for eleven months and two months, respectively, and claimed that they were subjected to multiple aspects of racial harassment, including racist cartoons, and that their supervisors did nothing to stop it and sometimes even engaged in the racial abuse. “You people can’t take a joke,” Diaz claimed his manager saying and, thereby, admitting to his involvement in the racist behavior.

Tesla is not the only automobile company to have faced such allegations. In 2017, Ford Motor Co. also agreed to pay up $10.1 million to settle a case of alleged harassment at its two factories in California. Lawrence Organ, the plaintiffs’ lawyer in the Tesla case, said that his clients were also seeking damages in “the millions” of dollars. In his statement, he said:

“Tesla is not sending a message that this kind of conduct in the workplace is not permitted.”

The response in the stock market is likely to be seen on Thursday when the market reopens.