SpaceX sues US agency over allegations of firing critical workers
January 4, 2024 – 5:26 PM EST
(Reuters) – Rocket and satellite maker SpaceX is taking legal action against a U.S. labor board to halt its case accusing the company of wrongfully terminating employees who criticized CEO Elon Musk. The employees referred to Musk as “a distraction and embarrassment.”
In a lawsuit filed in Brownsville, Texas federal court, SpaceX argues that the National Labor Relations Board (NLRB), which lodged a complaint against the company, violates the U.S. Constitution.
The NLRB claims that SpaceX violated federal labor law by firing eight workers in 2022 for signing the critical letter, which accused Musk of making sexist remarks that contradicted company policies. The case will be heard by an administrative judge and a five-member board appointed by the U.S. president. Decisions made by the board can be appealed in federal court.
However, SpaceX contends in its lawsuit that the NLRB’s structure is unconstitutional because federal law only allows for the removal of board members and administrative judges for cause, not at will.
The lawsuit aims to prevent the NLRB case from proceeding.
A spokesperson for the NLRB declined to comment.
SpaceX previously used a similar strategy to halt an administrative case by the U.S. Department of Justice, which accused the company of unlawfully refusing to hire refugees and asylum recipients.
In November, a federal judge in Brownsville, where the current case was filed, paused the administrative case pending the outcome of SpaceX’s lawsuit. The judge ruled that administrative judges at the Justice Department must be appointed by the president, not the attorney general as currently practiced, in accordance with the U.S. Constitution.
The NLRB is already facing a similar lawsuit from a Starbucks Corp employee who opposed the unionization of the New York store where she works. The worker sued the board in October after her petition for an election to dissolve the union was denied. The agency has not yet responded to that lawsuit.
Reporting by Daniel Wiessner in Albany, New York, Editing by Alexia Garamfalvi and Sonali Paul
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What is the reason behind SpaceX filing a lawsuit against the National Labor Relations Board?
> SpaceX Files Lawsuit Against National Labor Relations Board
January 4, 2024 – 5:26 PM EST
(Photo by Eva Marie Uzcategui/Getty Images)
Reuters reports that SpaceX, the renowned rocket and satellite manufacturer, has taken legal action against the National Labor Relations Board (NLRB) to halt a case accusing the company of wrongfully terminating employees who criticized CEO Elon Musk. The employees referred to Musk as ”a distraction and embarrassment.”
In a lawsuit filed in Brownsville, Texas federal court, SpaceX argues that the NLRB violates the U.S. Constitution. The NLRB claims that the company violated federal labor law by firing eight workers in 2022 for signing a letter that criticized Musk for making sexist remarks conflicting with company policies. The case will be heard by an administrative judge and a five-member board appointed by the U.S. president. Any decisions made by the board can be appealed in federal court.
However, SpaceX contends in its lawsuit that the structure of the NLRB is unconstitutional because federal law only allows for the removal of board members and administrative judges for cause, not at will.
The goal of the lawsuit is to prevent the NLRB case from proceeding. A spokesperson for the NLRB declined to comment on the matter.
This is not the first time SpaceX has used legal action to halt an administrative case. Previously, they successfully paused an administrative case by the U.S. Department of Justice, which accused the company of unlawfully refusing to hire refugees and asylum recipients.
In November, a federal judge in Brownsville, where the current case was filed, paused the administrative case pending the outcome of SpaceX’s lawsuit. The judge ruled that administrative judges at the Justice Department must be appointed by the president, not the attorney general as currently practiced, in accordance with the U.S. Constitution.
Interestingly, the NLRB is already facing a similar lawsuit from a Starbucks Corp employee who opposes the unionization of the New York store where she works. The worker sued the board in October after her petition to dissolve the union was denied. The agency has not yet responded to that lawsuit.
– Reporting by Daniel Wiessner in Albany, New York, Editing by Alexia Garamfalvi and Sonali Paul
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