SpaceX Faces Labor Agency Accusations for Dismissing Employees Over Letter Criticizing CEO Elon Musk

SpaceX, the prominent rocket and satellite manufacturer, has come under scrutiny from the U.S. labor agency, the National Labor Relations Board (NLRB), for allegedly firing eight employees unlawfully. These employees were dismissed following the circulation of a letter critical of founder and CEO Elon Musk, describing him as a ‘distraction and embarrassment.’

The NLRB complaint states that SpaceX violated federal labor laws that protect workers’ rights to collectively advocate for better working conditions. The contentious letter, sent to SpaceX executives in June 2022, criticized Musk’s publicly made, sexually suggestive tweets, which the employees felt contradicted the company’s policies on diversity and workplace conduct.

Additionally, SpaceX is accused of interrogating and disparaging the involved employees, as well as threatening further firings for similar activities. SpaceX has yet to respond to these allegations.

One of the dismissed employees, Deborah Lawrence, asserted that the letter was an expression of concern for the company’s mission and its employees, in a statement provided by her lawyers. She highlighted the perceived ‘toxic culture’ at SpaceX, especially regarding harassment against women.

The NLRB’s general counsel will prosecute the case, which could escalate to an administrative judge and potentially to federal appeals if not settled. The hearing is scheduled for March 5. If SpaceX is found guilty, it could face orders for reinstatement and back pay for the workers, as well as more severe penalties in future cases.

This case adds to a series of accusations against Musk-run companies for alleged violations of labor and employment laws. Recent reports include unaddressed workplace injuries at SpaceX, accusations against social media service X (formerly known as Twitter), and several complaints and lawsuits involving Tesla Inc. for alleged discrimination and labor law violations.