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SpaceX sues US agency over allegations of firing critical workers


January 4, 2024 – 5:26 PM EST

(Photo by Eva Marie Uzcategui/Getty Images)

(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.”

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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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