Tesla’s lawsuit that helped it secure the go-ahead to resume operations at its Fremont plant reflects a bigger issue of companies feeling frustrated in California and anxious about their economic viability, a policy director says.
“There are a few things to keep in mind about Tesla, it was one of the last manufacturing companies to shut down in the lead up to the statewide lockdown, they pushed to the edge, and one reason they did so, and are pushing for reopening is because of the automation at the factory,” Kevin Klowden, executive director of the Milken Institute’s California Center, told the Northern California Record. ”Unlike most manufacturing companies or traditional car manufacturers, Tesla is in a situation where they do have fewer people in more space – that doesn’t mean workers are immune, they need to do social distancing and other procedures.”
Tesla’s lawsuit, filed May 9 in U.S. District Court for the Northern District of California, seeks injunctive and declaratory relief to allow its Fremont factory to reopen. On Tuesday, Alameda County officials announced in a news release that if, “Tesla’s site-specific Fremont COVID-19 Prevention and Control Plan” included additional safety measures and public health indicators remained stable, the plant could proceed with reopening.
“The lawsuit reflects a bigger issue in terms of companies feeling particularly frustrated in California and very concerned about their economic viability,” Klowden said.
“So, if Telsa can push its way into opening, can others do the same thing? Do those arguments apply to other companies? Or, is this being treated as a case of exceptionalism?” he added.
Tesla’s attorneys did not reply to a request for comment.
Even with an extensive “Return to Work Playbook” on its website, Tesla’s move also represents a shift in risk.
“It means if something happens, if there’s a concentrated outbreak for any reason, then Tesla has to deal with fallout from that,” Klowden said.
How it ends up could hinge on potential liability protections for businesses.
“That depends on the federal government, there has been a push to exempt companies from liability so it’s not clear exactly how that will play out,” Klowden said. “The big thing connected to that is, if you are Tesla, and you are able to if you do this, it’s not simply legal liability, it’s can you operate safely enough that your workers feel safe coming back.”
There are three real barriers companies need to overcome to reopen, Klowden said:
1- Whatever the state or county regulations are.
2- Being able to make the case that you can be safe in a persuasive way to courts and government.
3- Do workers feel safe, and do you have a contingency plan?
Any company will have to prove itself, Klowden said.
“If you can’t keep workers safe, then you spend a lot of money opening up only to have to shut down again,” he added.