The U.S. National Labor Relations Board (NLRB) has recently lodged a complaint against SpaceX, Elon Musk’s renowned defense contractor. This complaint contends that the company unlawfully terminated the contracts of eight employees who had written an open letter criticizing Musk’s behavior and accusing the workplace of enabling sexual harassment selectively. In a spectacular twist, CNBC successfully obtained a copy of the NLRB complaint through a Freedom of Information Act request. The document asserts that these eight employees collaborated with other colleagues to draft and distribute the open letter as a means to express their concerns about the workplace environment.
In the open letter penned by the SpaceX employees, they highlight the distracting and embarrassing nature of Musk’s conduct in the public sphere. They specifically denounce his divisive posts on social media and the alleged instances of sexual misconduct, which contradicts SpaceX’s own policies that claim to have a zero tolerance policy towards such behaviors. Business Insider’s report, which revealed Musk’s alleged propositioning and exposure towards a flight attendant aboard one of SpaceX’s private jets in 2016, provided the impetus for the employees to publish their concerns internally. Notably, it was reported that SpaceX settled a sexual harassment claim filed against Musk for $250,000 in 2018. Despite Musk’s vehement denial of the allegations, referring to them as “wild accusations,” the negative publicity surrounding the issue compelled SpaceX COO and President Gwynne Shotwell to issue a public defense of Musk against the allegations.
Following the emergence of the open letter, the NLRB conducted an investigation into the matter and discovered that the management of SpaceX engaged in what they termed as “interrogation” of the authors. They further highlighted that the company made coercive statements to them, including the suggestion that they should quit if they disagreed with Musk’s behavior. Consequently, the NLRB complaint asserts that SpaceX ultimately terminated the employment of these individuals due to their protected speech, thus violating labor laws.
Curiously, Musk markets himself as a staunch advocate of free speech, upholding an absolutist stance. However, it has been documented that his companies, under his ownership, have repeatedly sought to restrict the speech of others when it criticized Musk or his businesses. For instance, the social media platform X (formerly known as Twitter) has suspended the accounts of users who have expressed criticisms or shared records critical of Musk or his companies, including notable figures such as software developer Travis Brown and Aaron Greenspan, the founder of PlainSite, an online database of legal and public records.
The SpaceX employees who were terminated after raising their concerns have taken further action by filing a formal complaint with the California Civil Rights Department. The complaint specifically alleges a “failure to correct sexual harassment at SpaceX.” It is worth noting that Hawthorne, California, is home to significant operations and the headquarters of SpaceX. While SpaceX declined to comment on the matter, neither did the California Civil Rights Department respond to requests for comment.
The NLRB’s spokesperson informed CNBC that the labor agency’s regional director issued the consolidated complaint against SpaceX after investigating the allegations made by the former employees. The NLRB’s regional office will now strive to facilitate a settlement between SpaceX and the terminated employees. However, should an agreement fail to materialize, a hearing before an NLRB administrative law judge is scheduled to commence on March 5 in Los Angeles. It is important to note that the judge’s decision is not necessarily final and can be subjected to an appeal process, which can extend to the board of the NLRB and federal appeals court.
The NLRB’s complaint against SpaceX sheds light on the alleged unlawful termination of employees following their publication of an open letter critical of Elon Musk and the company’s handling of sexual harassment. The findings of unauthorized interrogation, coercive statements, and subsequent termination raise concerns about the protection of free speech in Elon Musk’s business ventures. As the legal proceedings unfold, it remains to be seen how justice will be served in this complex case.
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