Federal Agency Accuses SpaceX of Wrongfully Terminating Employees Critical of Musk

(Source-The-Economic-Times)

Federal labor authorities accused SpaceX on Wednesday of unlawfully terminating eight employees who circulated a critical letter about the company’s founder and CEO, Elon Musk. The National Labor Relations Board (NLRB) filed a complaint, stating that SpaceX fired the employees in 2022 for calling on the company to distance itself from Musk’s controversial social media comments, including one mocking sexual harassment allegations against him.

The letter, circulated by employees, also urged SpaceX to clarify and consistently enforce its harassment policies.

The complaint alleged that Gwynne Shotwell, the company’s president and COO, unlawfully restricted employees from disseminating the letter, with similar infractions identified among other executives and managers.

The NLRB complaint accused SpaceX of unlawfully discharging employees who drafted and circulated the open letter, highlighting Musk’s actions and allegations of sexual harassment negatively impacting the company’s reputation. The complaint alleges that an employer at SpaceX attributed the firings to the open letter and discouraged employee participation, even threatening discharge for engaging in protected concerted activities.

Backpay for Terminated Employees:

The NLRB is seeking a settlement before a scheduled hearing on March 5, aiming for reinstatement and back pay for the terminated employees. SpaceX has not responded to requests for comment. The complaint follows an investigation and is not a final decision from the NLRB. The legal action underscores the ongoing tension between SpaceX leadership and employees advocating for improved workplace conditions and challenging the company’s culture. 

Furthermore, the complaint outlines instances where the employer at SpaceX restricted the distribution of the letter, interrogated other employees about it, and created an impression of surveillance by reading and showing screenshots of employee communications. The NLRB argues that such actions violate the rights of employees to engage in concerted activities for mutual aid or protection, as guaranteed by the National Labor Relations Act.

The NLRB is now seeking a settlement before a scheduled hearing on March 5, aiming to secure reinstatement and back pay for the terminated employees. This legal action underscores the ongoing tension between SpaceX’s leadership and employees advocating for improved workplace conditions and a shift in the company’s culture.

The accusations of restricting the circulation of the letter and creating an atmosphere of surveillance raise questions about the company’s commitment to open discourse and employee rights. The NLRB’s focus on securing reinstatement and back pay for the terminated employees signals a commitment to addressing alleged wrongful terminations and promoting a fair and supportive work environment.