Tesla's Racial Harassment Mediation: A New Chapter Begins

Tesla has agreed to enter mediation over a lawsuit initiated by the U.S. Equal Employment Opportunity Commission, alleging racial harassment at its Fremont plant. The mediation, aiming to reach a settlement, is scheduled to begin in the coming months. Previous lawsuits on similar allegations were dismissed by a California judge.

Tesla has agreed to enter mediation in response to a lawsuit from the U.S. Equal Employment Opportunity Commission (EEOC), which accuses the electric vehicle giant of allowing widespread racial harassment at its Fremont, California plant.

The EEOC claims that employees were subjected to racial slurs and racist graffiti, including swastikas and nooses, some of which were even visible on cars rolling off the assembly line. Tesla has denied awareness of such misconduct and labeled the EEOC's actions as "headline-chasing."

Mediation talks are expected to commence between March and April, with both parties planning to propose further steps by June 17 should the discussions fail to yield a resolution. This comes after a California judge ruled against a class-action suit involving over 6,000 Black workers, citing a lack of willing testimony.

(With inputs from agencies.)