SpaceX files case against US agency over accusation of firing workers critical of Musk

Rocket and satellite maker SpaceX sued a US labour board on Thursday (Jan 4) while blocking its case in which the company was accused of illegally firing employees. The employees, who lost their jobs, were reported to have sent a letter to company executives in which they called its CEO Elon Musk, “a distraction and embarrassment”.

In a lawsuit which was filed in the federal court of Brownsville, Texas, it was claimed by Space X that the structure of the National Labor Relations Board (NLRB), which had filed a complaint against the company on Wednesday (Jan 3) - violates the constitution of the United States.

The NLRB alleged that federal labour law was violated by Space X by firing eight workers in 2022 after they signed a letter in which they accused Musk of making sexist comments, which were against the company policies. The case is set to be headed by an administrative judge as well as a five-member board, which was appointed by the US president. The decision of the board can be appealed in federal court.

Space X saysstructure of NLRB 'unconstitutional'

In its lawsuit, SpaceX claimed that because federal law only permits the removal of administrative judgeson the basis of a cause and not at will, the structure of NLRB is unconstitutional. The lawsuit is aimed at blocking the NLRB case from moving forward.

Recently, SpaceX utilised a similar tactic for blocking an administrative case by the US Department of Justice, which had claimed that the company illegally refused to hire asylum recipients and refugees.

Watch:Elon Musk has new content moderation rule for X, staff told not to remove problematic content

The administrative case was paused by a federal judge in Brownsville in November, because of which the outcome of the lawsuit filed by SpaceX remains pending. The judge said that, as per the US constitution, the president and not the attorney general appoints the administrative judges at the justice department.

The NLRB is already dealing with a similar lawsuit filed by a Starbucks employee who opposed the unionisation of the store in New York where she was employed. In October, the board was sued by the worker after it denied her petition for an election so that the union could be dissolved.

(With inputs from agencies)