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Rocket and satellite maker SpaceX sues a US labour board

SpaceX has taken legal action against the US National Labor Relations Board (NLRB), filing a lawsuit in the federal court of Brownsville, Texas, while simultaneously blocking the NLRB’s case. The lawsuit contends that the structure of the NLRB, which accused SpaceX of illegally firing eight employees in 2022 after they criticized CEO Elon Musk in a letter, violates the US Constitution.

The NLRB had alleged that SpaceX violated federal labor law by terminating employees who signed a letter accusing Musk of making sexist comments, contrary to the company’s policies. SpaceX claims that the structure of the NLRB is unconstitutional because federal law allows the removal of administrative judges only for cause and not at will. The lawsuit aims to prevent the NLRB case from proceeding.

This legal move by SpaceX follows a similar strategy employed to block an administrative case by the US Department of Justice. The Department of Justice had asserted that SpaceX unlawfully refused to hire asylum recipients and refugees.

The NLRB’s case against SpaceX will be overseen by an administrative judge and a five-member board appointed by the US president. The decision of the board can be appealed in federal court. The legal dispute adds to the ongoing scrutiny of SpaceX’s employment practices and raises questions about the balance between labor rights and corporate responses to employee criticisms.

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