A U.S. labor agency accused rocket and satellite manufacturer SpaceX on Wednesday of forcibly terminating eight workers for distributing a letter denouncing founder and CEO Elon Musk as a "distraction and embarrassment."

According to a complaint filed by a regional representative of the National Labor Relations Board (NLRB), SpaceX has infringed upon the federal labor law rights of its employees to organize and promote improved working conditions.

(Photo : by TIMOTHY A. CLARY/AFP via Getty Images)
A U.S. labor agency accused rocket and satellite manufacturer SpaceX on Wednesday of forcibly terminating eight workers for distributing a letter denouncing founder and CEO Elon Musk as a "distraction and embarrassment."

The June 2022 letter to SpaceX officials addressed a number of sexually provocative tweets that Musk had sent since 2020. The workers demanded that SpaceX denounce Musk's remarks since they were incompatible with the company's regulations regarding diversity and workplace misbehavior.

In addition, SpaceX is accused in the lawsuit of questioning staff members over the letter, demeaning the individuals involved, and threatening to dismiss staff members who participated in similar activities.

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A Toxic Culture?

According to Deborah Lawrence, one of the sacked employees, SpaceX has a "toxic culture" where harassment is accepted, especially toward women. Her attorneys released a comment on the matter.

The president appoints the five members of the NLRB board, and the general counsel represents the organization in prosecutorial capacity.

If SpaceX does not reach a settlement, an administrative judge will consider the issue; the judge's ruling may be challenged before the board and ultimately a federal appeals court. March 5 is the date of the hearing.

The NLRB has the authority to mandate reinstatement and back compensation for employees who are fired in violation of labor laws. In the event that SpaceX is found to have broken the law, it may potentially be subject to harsher sanctions in subsequent board cases.

This lawsuit is the most recent to charge Musk-owned businesses of breaking labor and employment laws against their workers' rights.

A group of workers published an open letter through SpaceX internal channels in June 2022, criticizing Elon Musk's behavior on the internet and calling on the corporation to reject and disassociate itself from his statements made in public.
"Elon's behavior in the public sphere is a frequent source of distraction and embarrassment for us, particularly in recent weeks," the letter said. Several staff who were involved in its preparation were swiftly sacked once it circulated inside SpaceX. 

At least 600 previously unreported occupational incidents at SpaceX facilities, including crushed limbs, electrocution, brain injuries, and one fatality, were revealed by Reuters in November. Requests for comments on the results were not answered by SpaceX.

The Musk-owned social networking platform X, formerly known as Twitter, was accused by the NLRB in October of unlawfully terminating a worker due to tweets that questioned the company's return-to-office policy. X has refuted any misconduct.

Furthermore, the CEO of Tesla Inc. (TSLA.O), a manufacturer of electric vehicles, has been the target of many NLRB complaints in addition to a push to organize a union and other lawsuits alleging pervasive racial discrimination at its plants. According to Tesla, it does not accept discrimination.

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