SpaceX sues NLRB after Board consolidates nine complaints accusing the company of unfair labor practices

By Ramishah Maruf, CNN

New York (CNN) — SpaceX responded to a National Labor Relations Board (NLRB) consolidated complaint and an order notifying the company of an administrative hearing by filing its own motion with a federal court, alleging that the structure of the NLRB itself is “unconstitutional.”

The NLRB filed a consolidated complaint Wednesday against SpaceX, and ordered a hearing before an NLRB administrative judge in March. The NLRB’s action came after nine former employees filed complaints with the agency, alleging SpaceX had engaged in unfair labor practices. The former employees said were illegally fired by the rocket company after they wrote management a letter asking them to publicly condemn CEO Elon Musk’s “harmful” behavior on social media.

On Thursday SpaceX sued the NLRB in response, arguing against the agency’s order to hold a proceeding on the complaints. SpaceX alleges the proceeding is unlawful and the structure of NLRB violates Article II of the United States Constitution, as well as the Fifth and Seventh amendments.

The NLRB declined to comment on the lawsuit, and deferred to the complaint.

CNN has also reached out to SpaceX for comment, though the company does not typically respond to media requests and has not previously commented to CNN on this matter.

Eight former SpaceX employees filed labor-law complaints with the NLRB in November 2022, alleging they were unfairly fired after they wrote company management a letter asking them to publicly condemn Musk’s “harmful” behavior on social media. A ninth former employee followed suit in December 2023.

In the June letter, the employees protested Musk’s “inappropriate, disparaging, sexually charged comments on Twitter,” according to the charge document filed by the ninth former employee.

The authors of the letter said Musk’s behavior created a hostile work environment, and that they were seeking leadership accountability and enforcement of SpaceX’s “No Asshole” policy, the charge filed in December read.

SpaceX COO Gwynne Shotwell described the company’s “No Asshole” policy in a 2021 commencement address, saying, “These kinds of people — assholes — interrupt others; they shut down or co-opt conversation; and they create a hostile environment where no one wants to contribute… Embrace the ideas of your fellow workers, especially when they differ greatly from yours.”

The complaint seen by CNN alleges SpaceX discouraged participation in the open letter and restricted employees from distributing it. It also said employees were shown screenshots of their communications which “created an impression among its employees that their protected concerted activities were under surveillance.”

The NLRB said it issued the consolidated complaint Wednesday after the Los Angeles Regional Director investigated the December 2023 charge and concluded it had merit.

A filed complaint and hearing notice doesn’t mean the NLRB has reached a decision. The regional director must approve a potential settlement. If that doesn’t happen, a hearing on March 5 in Los Angeles with an NLRB administrative law judge will be held, according to a notice in the consolidated complaint.

– CNN’s Jackie Wattles contributed to this report.

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