NLRB abandons SpaceX’s legal fight over fired engineers citing jurisdictional issue


The National Labor Relations Board (NLRB) is giving up a multi-year legal battle with by Elon Musk SpaceX and indicated that it will refrain from filing cases against the company in the future.

Bloomberg News reported Monday, citing a letter from the board, that it would dismiss one case filed against SpaceX It comes two years after the company fired eight engineers who were involved in an open letter criticizing Musk.

the report cited a letter reviewed by Bloomberg informing lawyers for the former employees that a recent opinion issued by a separate agency, the National Mediation Board, that SpaceX engineers were under its jurisdiction rather than the NLRB’s.

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SpaceX

The NLRB determined that it had no authority over SpaceX. (Joe Raedle/Getty Images)

The Bloomberg report said Danielle Pierce, regional director of the NLRB, wrote in the letter, “Accordingly, the National Labor Relations Board has no jurisdiction over the employer, and therefore I am terminating your position.”

The NLRB’s move follows a court ruling last summer that found the labor regulator’s structure likely unlawful. The case was brought by SpaceX, although other companies joined the challenge.

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Elon Musk, CEO of Tesla

SpaceX engineers were fired after engaging in a critical letter with SpaceX CEO Elon Musk. (Chesnot/Getty Images)

Last August, the US Fifth Circuit Court of Appeals based in New Orleans, agreed with SpaceX and two other companies that the NLRB’s structure is likely illegal and blocked the agency from bringing cases against them.

The National Mediation Board (NMB) has the supervision of the railway and airlines and works to prevent strikes by labor groups in these industries, while the NLRB’s jurisdiction covers most other private sector employers and can resolve charges of unfair labor practices.

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Elon Musk SpaceX

SpaceX founder Elon Musk recently announced that the company is focusing on missions to the moon before Mars. (Michael Gonzalez/Getty Images)

Workers at companies covered by the NLRB have more protections for participating collective action change their working conditions whether they are members of a union or not.

In contrast, workers who are under the supervision of the NMB are covered by a different law that does not offer the same degree of protection.

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Reuters contributed to this report.



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