SpaceX faces allegations of wrongful employee firings

SpaceX, the renowned rocket and satellite manufacturer, has come under scrutiny as a U.S. labor agency accuses the company of unlawfully terminating eight employees. The employees were allegedly fired for circulating a letter that characterized founder and CEO Elon Musk as a “distraction and embarrassment.”

A regional official from the National Labor Relations Board (NLRB) lodged a complaint, asserting that SpaceX violated the workers’ right to unite and advocate for improved working conditions under federal labor law. The letter, sent to SpaceX executives in June 2022, centered on Musk’s tweets since 2020, with the employees contending that the statements contradicted the company’s diversity and workplace misconduct policies.

The NLRB complaint further accuses SpaceX of interrogating employees regarding the circulated letter, disparaging those involved, and threatening termination for similar activities. As of now, SpaceX has not issued any immediate response to the allegations.

Deborah Lawrence, one of the dismissed employees, described SpaceX’s culture as “toxic” and claimed that harassment, particularly against women, was tolerated within the company. Lawrence emphasized that the open letter was penned out of concern for the mission and the well-being of the colleagues.

The NLRB’s general counsel, functioning as a prosecutor, is responsible for bringing cases to the five-member board appointed by the president. If a settlement is not reached, the case is slated for a hearing on 5 March 2024, before an administrative judge. This decision can be appealed to the board and, subsequently, to a federal appeals court.

In instances where the NLRB determines that firings violate labor laws, it has the authority to order reinstatement and provide back pay to affected workers. Additionally, if SpaceX is found guilty of violating labor laws, it may face more severe penalties in future cases before the board.

This case adds to a series of allegations against companies linked to Elon Musk for violating employees’ rights under labor and employment laws. In November 2023, it was reported that over 600 unreported workplace injuries occurred at SpaceX facilities, including fatal incidents. SpaceX did not respond to comments on these findings.

Elon Musk’s other ventures, including social media platform X (formerly Twitter) and electric vehicle maker Tesla Inc., have also faced NLRB complaints and legal challenges concerning workplace policies and discrimination. SpaceX and the affiliated companies have consistently denied any wrongdoing.