TESLA MOTORS, INC. | Adopt a Non-Interference Policy Respecting Freedom of Association at TESLA MOTORS, INC.

Status
Filed
Previous AGM date
Resolution details
Company ticker
TSLA
Resolution ask
Adopt or amend a policy
ESG theme
  • Social
ESG sub-theme
  • Decent work
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Consumer Discretionary
Company HQ country
United States
Resolved clause
RESOLVED:  the Board of Directors of Tesla, Inc. shall adopt and disclose a Non-interference Policy (?Policy?) upholding the rights to freedom of association and collective bargaining in its operations, as reflected in the International Labour Organization?s Declaration on Fundamental Principles and Rights at Work (?Fundamental Principles?). The Policy should contain commitments to:  Non-interference when employees seek to form or join a trade union, and a prohibition against acting to undermine this right or pressure employees not to form or join a trade union; Good faith and timely collective bargaining if employees form or join a trade union; Uphold the highest standard where national or local law differs from international human rights standards; Define processes to identify, prevent, account for, and remedy practices that violate or are inconsistent with the Policy.
Supporting statement
RESOLVED:  the Board of Directors of Tesla, Inc. shall adopt and disclose a Non-interference Policy (?Policy?) upholding the rights to freedom of association and collective bargaining in its operations, as reflected in the International Labour Organization?s Declaration on Fundamental Principles and Rights at Work (?Fundamental Principles?). The Policy should contain commitments to:  Non-interference when employees seek to form or join a trade union, and a prohibition against acting to undermine this right or pressure employees not to form or join a trade union; Good faith and timely collective bargaining if employees form or join a trade union; Uphold the highest standard where national or local law differs from international human rights standards; Define processes to identify, prevent, account for, and remedy practices that violate or are inconsistent with the Policy. Freedom of association and collective bargaining are fundamental human rights protected by international standards including the Fundamental Principles, United Nation?s Guiding Principles on Business and Human Rights, and United Nation?s Universal Declaration of Human Rights. Tesla?s policies lack clarity as to which standards will prevail where applicable laws offer protections that fall short of international standards. Tesla?s Business Code of Ethics states that ?Tesla is committed to upholding and respecting all internationally recognized human rights?? Yet, its Global Human Rights Policy undermines this commitment by stating Tesla respects labor rights ?[i]n conformance with local law,? notably leaving out the commitment to the often more stringent international standards.  There are clear indications that Tesla may not be adhering to international labor rights standards. [i]   In Sweden, Tesla mechanics represented by IF Metall have been on strike for over a year and Tesla operations have suffered from a number of solidarity strikes after refusing to sign a collective agreement. [ii] In Germany, Tesla is refusing to bargain with employees represented by IG Metall and has been accused of threatening and firing IG Metall members of the works council according to public reports. [iii]   Freedom of association and collective bargaining rights enable workers to promote and realize other fundamental labor rights, including the rights to a safe and healthy workplace that is free from discrimination. In the United States, Tesla has faced multiple lawsuits around racial and sexual harassment [iv] and has had numerous health and safety violations. [v] Additionally, Tesla has been accused of unsafe working conditions in Germany. [vi] Such reports may represent material reputational, legal, and operational risks to Tesla?s shareholders. For example, under the new German Supply Chain Due Diligence Act, companies can be held legally responsible for human rights abuses in their operations and global supply chains with fines of up to 2% of average annual ?turnover? or revenue. Further the European Union?s new Corporate Sustainability Due Diligence Directive establishes a legal duty for companies to identify and address adverse human rights impacts throughout their operations and value chain.   The Policy will add clarity, promote better adherence, and help mitigate risk. [i] https://www.cnbc.com/2022/06/02/tesla-paid-pr-firm-to-surveil-employees-on-facebook-in-2017-union-push.html ; https://www.theguardian.com/technology/2018/sep/10/tesla-workers-union-elon-musk ;  https://www.cnbc.com/2017/04/25/workers-involved-in-union-activities-say-tesla-is-illegally-intimidating-them.html [ii] https://www.bloomberg.com/news/articles/2024-10-01/tesla-faces-widening-strike-in-sweden-as-unions-double-down [iii] https://www.reuters.com/business/autos-transportation/german-union-slams-aggressive-tesla-firing-works-council-rep-2024-10-14/ ; [iv]   https://www.law.com/therecorder/2024/06/18/deeply-troubling-tesla-sued-for-creating-racially-hostile-work-environment-amid-surge-of-racial-discrimination-litigation/?slreturn=20241105161518 ; https://www.thenation.com/article/society/tesla-sexual-harassment-discrimination-austin/ [v] https://www.theinformation.com/articles/at-teslas-giant-texas-factory-injuries-and-safety-lapses-mount ; https://www.texasobserver.org/tesla-texas-worker-death-heat/ ; [vi] https://www.reuters.com/business/autos-transportation/tesla-rejects-union-claims-reports-health-safety-issues-german-plant-2023-10-10/ ; https://fortune.com/2024/09/30/tesla-managers-germany-sick-leave-visit-employees-safety-union-elon-musk/

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