US court rules that Twitter breached contracts by not paying bonuses

A US federal court ruled that the social network Twitternow called Xhe violated the contracts by not paying the annual performance bonuses verbally promised to his workers. The lawsuit for breach of contract The complaint was filed in June by former employer Mark Schobinger in California state courts and was heard Friday by U.S. District Judge Vince Chhabria of the San Francisco City Court (West). X can still appeal the decision.

“Schobinger has plausibly filed a breach of contract claim under California law. He claims Twitter has verbally promised to pay each employee a portion of the expected bonus“Judge Chhabria said.

“It’s at allegedly refusing to pay Schobinger the promised bonus, Twitter violated that contract,” he said.

The original lawsuit alleged that Twitter promised workers a performance bonus in 2022 if they stayed with the company until the last possible pay date, which was the first quarter of this year.

The court rejected Twitter’s attempts to dismiss the case and ruled that Schobinger’s request was valid breach of contract is valid under California law.

The social network, now owned by tycoon Elon Musk – also owner of the car company Tesla and the aerospace company SpaceX – is currently facing several complications, including an investigation by the European Union under a law designed to combat misinformation and hateful comments. criticism of his response to the recent riots in Dublin and the exodus of big advertisers.

Today the company is worth less than halfzthat Musk paid him in October 2022, according to internal documents sent to staff and disclosed by technology publication The Verge.

Meanwhile, Tesla is offering raises

Tesla will raise wages for some of its workers in the United States by 10% shortly after the United Auto Workers (UAW) union announced it will step up its efforts to unionize employees of the country’s big automakers. According to documents accessed by the television network CNBC, starting from January 2024 the salaries of workers at the Tesla battery plant in the city of Sparks, in the state of Nevada, will increase by 10%.

The percentage is similar to those increases compared to Toyota, Honda, Volkswagen (VW) and Kia have offered in recent weeks to their workers in the United States.

Only workers at the big three US manufacturers (General Motors, Ford and Stellantis) are unionised.

Last October, after a six-week strike that affected dozens of jobs, the UAW won 25 percent wage increases, among other economic and job benefits, for workers at Detroit’s Big Three.

Shortly after the agreements with GM, Ford and Stellantis, other automakers began offering wage increases in an effort to discourage unions from forming in their workplaces.

But UAW President Shawn Fain warned that the union’s next goal is to unionize the rest of the major U.S. automakers. especially Tesla, Toyota and VW.