The U.S. National Labor Relations Board (NLRB) has recently filed a complaint against SpaceX, the aerospace company founded by Elon Musk. According to the complaint obtained by CNBC through a Freedom of Information Act request, the NLRB alleges that SpaceX illegally dismissed eight employees after they wrote an open letter criticizing Musk and accusing the company of tolerating sexual harassment selectively.
The complaint states that the eight SpaceX employees engaged in concerted activities to voice their concerns about the workplace by drafting and circulating an open letter. In their letter, the employees expressed their dissatisfaction with Musk’s behavior in the public sphere, which they claimed was a frequent source of distraction and embarrassment for them. They also criticized Musk’s divisive posts on social media and accused him of alleged sexual misconduct, which they believed contradicted the company’s own policies against such behavior.
The open letter was initially posted internally at SpaceX after Business Insider reported Musk’s alleged sexual misconduct with a flight attendant on one of the company’s private jets in 2016. This incident led to a sexual harassment claim against Musk, which SpaceX reportedly settled for $250,000 in 2018. However, Musk has consistently denied these allegations, referring to them as “wild accusations.” Following the Business Insider report, SpaceX’s COO and President, Gwynne Shotwell, publicly defended Musk against the allegations of sexual harassment.
After the SpaceX employees published the open letter, the NLRB conducted an investigation and found that the company management engaged in “interrogation” of the authors and made coercive statements to them. The NLRB noted that SpaceX management even invited the employees to quit if they disagreed with Musk’s behavior. Consequently, the NLRB’s complaint asserts that SpaceX unlawfully terminated these employees due to their protected speech.
It is worth mentioning that Elon Musk often presents himself as a free speech advocate. However, CNBC has previously reported that his companies have actively attempted to suppress others’ criticism of Musk or his businesses. For instance, under Musk’s ownership, the social network X (formerly Twitter) has suspended accounts that shared records or remarks critical of Musk or his companies. This behavior raises questions regarding Musk’s commitment to free speech principles when it comes to addressing criticisms against him.
In addition to the NLRB complaint, the SpaceX employees who were terminated for publishing the open letter submitted a formal complaint to the California Civil Rights Department. The complaint alleges that SpaceX failed to address and correct sexual harassment within the company.
SpaceX, which has significant operations and headquarters in Hawthorne, California, has not provided any comments regarding these allegations. The California Civil Rights Department has not yet responded to this matter either.
The NLRB’s Los Angeles regional director has issued the consolidated complaint against SpaceX and will attempt to facilitate a settlement between the company and the former employees. In the event that a settlement is not reached, a hearing before an NLRB administrative law judge is scheduled to begin on March 5 in Los Angeles. It is important to note that the judge’s decision in this hearing is not necessarily final and could be appealed to the NLRB’s board or a federal appeals court.
The complaint filed by the NLRB against SpaceX highlights the allegations of unlawful termination of employees who voiced their concerns through an open letter. While maintaining a public image as a free speech advocate, Elon Musk’s companies have been reported to suppress criticisms, leading to questions surrounding his commitment to the principles of free speech. The upcoming settlement process and hearing will shed further light on the allegations and determine the future course of action for both SpaceX and the terminated employees.
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