JAKARTA - Tesla cut more than 14,000 workers in the largest layoffs in the company's history despite getting enough profit in the first quarter of 2024. The slowdown in demand for electric cars and the high aggressive competition from rivals in China is the reason Elon Musk's car manufacturer has called.
Not only Tesla, the car manufacturer Stellantis which was formed in 2021 through the merger between Fiat Chrysler Automobiles and the PSA Group also did the same by announcing the extension of employee Relations (PHK) at the Mirafiori factory, Europe.
In fact, this decision drew sharp criticism from local trade unions, especially because it coincided with the approval of CEO Carlos Tavares bonuses which were of fantastic value by shareholders.
Stellantis stated that the layoffs at the Mirafiori plant will continue until May 6, 2024. The ongoing work cuts have drawn strong criticism, especially because they coincided with the approval of Tavares CEO's jumbo bonus for 2023. The CEO's total compensation jumped 56 percent to 36.6 million euros (around Rp632 billion). The bonus also includes long-term incentives worth 13 million euros (around Rp224 billion) based on the achievement of certain performances.
"Nine-tens of my salary is determined by the company's results, so this proves that the company's performance doesn't appear to be too bad," Tavares said in response to the criticism, reported by Teslarati, April 17.
Meanwhile, the union stated that it is entitled to know about the new products to be produced, including the certainty of whether the factory will continue.
"We, as unions, have the right to request the production of a new model. Without a new model, the only certainty is the continuous use of social safety nets," said Secretary General Edi Lazzi of Fiom-Cgil Turin and Gianni Mannori in a joint statement.
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"Unfortunately, Tavares did not say anything about the new product last week. This is why it is necessary to open real negotiations at the Palazzo Chigi with the government, Stellantis, and trade unions. These negotiations should put Mirafiori at the center of attention, but also ask about the fate of other Italian factories. Otherwise, the car industry in our country could become extinct," they continued.
Previously, Stellantis CEO Carlos Tavares denied rumors that the company was planning to move the Italian out-of-production line. He argues that it is difficult to make a decision that the company can compete with Chinese electric vehicles. Tavares added that Stellantis has plans to invest more in Italy, although there are rumors that they will move to a country with cheaper production costs.
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