Senators Warren and Blumenthal probe NLRB's dropped charges against SpaceX for retaliation

Senators Elizabeth Warren of Massachusetts and Richard Blumenthal of Connecticut launched an inquiry into the National Labor Relations Board regarding the organisation's decision to dismiss allegations against Elon Musk's company SpaceX over claims of firing employees as retaliation, according to letters first reported by CNBC.

SpaceX is preparing to go public in June, aiming at a $2 trillion valuation.

During President Biden's tenure, the NLRB charged the aerospace firm with illegal dismissal of staff for criticising Musk in a public letter accusing him of sexist behavior and a broader environment of sexual misconduct at SpaceX.

The NLRB dropped these accusations citing jurisdictional challenges in February.

Warren and Blumenthal have requested data and documentation from the NLRB, seeking to determine whether the decision to drop the charges was influenced by "political motivations instead of the factual situation," potentially yielding to Musk, who invested about $300 million in efforts for President Trump's White House return.

When the NLRB dismissed the charges against SpaceX, they stated that the company should fall under the Railway Labor Act, which covers labour matters at railway and airline organisations, and referred the employees' issues to the National Mediation Board.

In their letter, dated April 15, Warren and Blumenthal stated, "By facilitating this agency switch, the NLRB essentially ended the case: these workers' claims for wrongful dismissal cannot go forward at the NMB because the NMB's legal framework does not safeguard the same kinds of group activities as the NLRB's does."

They also noted that NMB's stance on controlling SpaceX included an "unreasonable" concord that SpaceX functions as a "mail carrier by air for the United States Government," due to its occasional mail deliveries to the International Space Station for NASA.

The senators have urged the NLRB to provide, among other details, information and documentation by April 29 outlining the rationale for their jurisdictional change, as well as a record of all interactions with Musk or his representatives, along with any examples of categorizing a rocket firm like SpaceX as a mail provider by air.

In 2024, SpaceX initiated a federal lawsuit claiming the NLRB's structure violated constitutional principles and that the agency should be blocked from enforcing actions related to employee unfair treatment complaints. 

This case followed the termination of nine SpaceX employees who submitted an open letter to company leadership.

Musk has had long-standing disputes with union advocates, including within his car enterprise, Tesla. 

In 2021, the NLRB concluded that Tesla and Musk breached labor laws by dismissing a union supporter and for Musk's 2018 tweet stating, "Nothing preventing Tesla's team at our car facility from union voting. Could do so tomorrow if desired. Why pay union fees & exchange stock options for nothing?"