[US] SpaceX will be exempted from Labor Relations Act

In the US, the National Labor Relations Board (NLRB) has abandoned a Biden-era complaint against SpaceX following a finding that the agency does not have jurisdiction over the Elon Musk-led company, Ars Technica reports.

The US labour board stated that SpaceX should instead be regulated under the Railway Labor Act, which governs labour relations at railroad and airline companies.

The Railway Labor Act is enforced by a separate agency - the National Mediation Board - and has different rules from the National Labor Relations Act, enforced by the NLRB. The Railway Labor Act, for example, reportedly has an extensive dispute-resolution process that makes it difficult for railroad and airline employees to strike. 

Employers regulated under the Railway Labor Act are exempt from the National Labor Relations Act.

In January 2024, an NLRB regional director reportedly alleged in a complaint that SpaceX had illegally fired eight employees who wrote an open letter criticising CEO Mr Musk as a “frequent source of embarrassment.” The complaint sought the reinstatement of the employees, back pay, and letters of apology to those fired.

In response, SpaceX sued the NLRB, claiming the labour agency’s structure is unconstitutional. However, it was reportedly a different issue SpaceX raised later - that it is a common carrier, like a rail company or airline - that compelled the NLRB to drop its case. 

US regulators ultimately decided that SpaceX should be treated as a “common carrier by air” and “a carrier by air transporting mail” for the government.

Source: Ars Technica

(Links via original reporting)

In the US, the National Labor Relations Board (NLRB) has abandoned a Biden-era complaint against SpaceX following a finding that the agency does not have jurisdiction over the Elon Musk-led company, Ars Technica reports.

The US labour board stated that SpaceX should instead be regulated under the Railway Labor Act, which governs labour relations at railroad and airline companies.

The Railway Labor Act is enforced by a separate agency - the National Mediation Board - and has different rules from the National Labor Relations Act, enforced by the NLRB. The Railway Labor Act, for example, reportedly has an extensive dispute-resolution process that makes it difficult for railroad and airline employees to strike. 

Employers regulated under the Railway Labor Act are exempt from the National Labor Relations Act.

In January 2024, an NLRB regional director reportedly alleged in a complaint that SpaceX had illegally fired eight employees who wrote an open letter criticising CEO Mr Musk as a “frequent source of embarrassment.” The complaint sought the reinstatement of the employees, back pay, and letters of apology to those fired.

In response, SpaceX sued the NLRB, claiming the labour agency’s structure is unconstitutional. However, it was reportedly a different issue SpaceX raised later - that it is a common carrier, like a rail company or airline - that compelled the NLRB to drop its case. 

US regulators ultimately decided that SpaceX should be treated as a “common carrier by air” and “a carrier by air transporting mail” for the government.

Source: Ars Technica

(Links via original reporting)