AP7 submits a motion to Tesla’s Annual General Meeting regarding labor rights

12 July 2022

AP7 is involved in submitting a motion to Tesla’s Annual General Meeting together with Nia Impact Capital to strengthen employees’ rights within the company.

The AGM proposal, which is led by Nia Impact Capital, will be taken up at Tesla’s Annual General Meeting for the third year in a row. The proposal, with the aim of strengthening workers’ rights, has in previous years received 27 percent of the votes in 2020 and 45 percent of the votes in 2021.

The motion (proposal # 9) urges Tesla to report on the effect of the company using mandatory arbitration to resolve disputes between employees and Tesla as an employer.

Arbitration is an extrajudicial method. When allegations of discrimination or harassment are handled through arbitration, the underlying facts and the outcome of the case rarely remain public. This prevents other employees from learning about and acting on common problems.

A number of companies have already stopped requiring employees to go through arbitration in cases of discrimination and legislators have tried to ban or restrict the use of such provisions when harassment or discrimination has occurred.

Source: AP7
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