[US] SpaceX abrupt firings ‘violated’ labour law

On June 17, SpaceX fired a group of employees responsible for an open letter to corporate leaders that criticised their CEO Elon Musk. Now labour lawyers say the firings may have violated US labour law, The Verge reports.

The letter, circulated on June 16, called for stronger anti-harassment policies at SpaceX and a more restrained Twitter presence from Mr Musk. At least five employees were fired shortly after the letter was published.

It is not yet clear whether any of the fired employees will try to file suit with the National Labor Relations Board (NLRB). However, if they do, lawyers say they will have a strong case. “To be covered, an action has to be concerted (certainly the case here) and it has to relate to working conditions,” Charlotte Garden - a law professor at Seattle University who wrote about employee speech rights for the Economic Policy Institute earlier this year - told The Verge.

The most difficult part of retaliation cases is often proving that an employee was fired as retaliation for speaking up but SpaceX has made it easy to show the connection. In her note to employees after the firings, SpaceX president Gwynne Shotwell reportedly made it clear that the employees had been terminated specifically because of their involvement with the letter, which she described as “overreaching activism.” 

If SpaceX tried to deny it, the simple timing of the firings - less than 24 hours after the letter itself - makes the connection hard to ignore.

“This could very much be seen as retaliation for speaking up,” Mary Inman - a whistleblower attorney at Constantine Cannon - said. “What does this say to workers? It basically says we don’t want to hear from you.”

SpaceX did not respond to a request for comment.

The main hurdle for any legal challenge would be to show that the letter itself constitutes employees coming together to discuss working conditions, but the letter’s emphasis on company goals and “no asshole” policy seem to fit that model. There are exceptions if speech is vulgar, abusive, or directed at customers however none fits well with the circumstances of the SpaceX case.

“It strikes me as a letter that is mainly about working conditions,” Ms Garden told The Verge. “I think the NLRB would see it that way too.”

If the case is successful, SpaceX could be forced to reinstate the fired employees with back pay. Significantly, the protections would not apply to managers and supervisors; they are not subject to the National Labor Relations Act (NLRA).

The issues raised in the letter also fit into the bigger picture of long-standing harassment concerns within SpaceX. In December 2021, five former SpaceX employees came forward with complaints of specific harassment issues they felt had been mishandled. And a former intern filed suit against SpaceX in 2020, claiming the company retaliated against her after she reported a harassment incident. The employee letter makes the same point itself, saying “recent events are not isolated incidents; they are emblematic of a wider culture.”

Communications Workers of America (CWA) is using the SpaceX firings as further fuel for the ongoing effort to organise tech workers. “Elon Musk says he’s committed to free speech - except when his employees are exercising their legally protected right to speak out about their working conditions,” a CWA statement said. “We hope this will be a rallying point for workers at SpaceX, just like it was at Google and Activision.”

Source: The Verge

(Links and quotes via original reporting)

On June 17, SpaceX fired a group of employees responsible for an open letter to corporate leaders that criticised their CEO Elon Musk. Now labour lawyers say the firings may have violated US labour law, The Verge reports.

The letter, circulated on June 16, called for stronger anti-harassment policies at SpaceX and a more restrained Twitter presence from Mr Musk. At least five employees were fired shortly after the letter was published.

It is not yet clear whether any of the fired employees will try to file suit with the National Labor Relations Board (NLRB). However, if they do, lawyers say they will have a strong case. “To be covered, an action has to be concerted (certainly the case here) and it has to relate to working conditions,” Charlotte Garden - a law professor at Seattle University who wrote about employee speech rights for the Economic Policy Institute earlier this year - told The Verge.

The most difficult part of retaliation cases is often proving that an employee was fired as retaliation for speaking up but SpaceX has made it easy to show the connection. In her note to employees after the firings, SpaceX president Gwynne Shotwell reportedly made it clear that the employees had been terminated specifically because of their involvement with the letter, which she described as “overreaching activism.” 

If SpaceX tried to deny it, the simple timing of the firings - less than 24 hours after the letter itself - makes the connection hard to ignore.

“This could very much be seen as retaliation for speaking up,” Mary Inman - a whistleblower attorney at Constantine Cannon - said. “What does this say to workers? It basically says we don’t want to hear from you.”

SpaceX did not respond to a request for comment.

The main hurdle for any legal challenge would be to show that the letter itself constitutes employees coming together to discuss working conditions, but the letter’s emphasis on company goals and “no asshole” policy seem to fit that model. There are exceptions if speech is vulgar, abusive, or directed at customers however none fits well with the circumstances of the SpaceX case.

“It strikes me as a letter that is mainly about working conditions,” Ms Garden told The Verge. “I think the NLRB would see it that way too.”

If the case is successful, SpaceX could be forced to reinstate the fired employees with back pay. Significantly, the protections would not apply to managers and supervisors; they are not subject to the National Labor Relations Act (NLRA).

The issues raised in the letter also fit into the bigger picture of long-standing harassment concerns within SpaceX. In December 2021, five former SpaceX employees came forward with complaints of specific harassment issues they felt had been mishandled. And a former intern filed suit against SpaceX in 2020, claiming the company retaliated against her after she reported a harassment incident. The employee letter makes the same point itself, saying “recent events are not isolated incidents; they are emblematic of a wider culture.”

Communications Workers of America (CWA) is using the SpaceX firings as further fuel for the ongoing effort to organise tech workers. “Elon Musk says he’s committed to free speech - except when his employees are exercising their legally protected right to speak out about their working conditions,” a CWA statement said. “We hope this will be a rallying point for workers at SpaceX, just like it was at Google and Activision.”

Source: The Verge

(Links and quotes via original reporting)