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The National Labor Relations Board (NLRB) is reportedly giving up on a multi-year legal fight with Elon Musk’s SpaceX and signaled it will refrain from bringing cases against the company in the future.
Bloomberg News reported on Monday, citing a letter from the board, that it would dismiss a case brought against SpaceX two years ago after the company fired eight engineers who were involved in an open letter that was critical of Musk.
The report cited a letter reviewed by Bloomberg that informed the attorneys of the former employees that a recent opinion issued by a separate agency, the National Mediation Board, that SpaceX engineers fell under its jurisdiction rather than the NLRB’s.
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Bloomberg’s report said Danielle Pierce, a regional NLRB director, wrote in the letter, “Accordingly, the National Labor Relations Board lacks jurisdiction over the Employer and, therefore, I am dismissing your charge.”
The NLRB’s move follows a court ruling last summer that found the labor regulator’s structure is likely illegal. The case was brought by SpaceX, though other companies joined the challenge.
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Last August, the U.S. Fifth Circuit Court of Appeals based in New Orleans agreed with SpaceX and two other companies that the NLRB’s structure is likely unlawful and blocked the agency from pursuing cases against them.
The National Mediation Board (NMB) has oversight of railroad and airline companies and works to prevent strikes by labor groups across those industries, whereas the NLRB’s jurisdiction covers most other private sector employers and can resolve unfair labor practice charges.
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Workers at businesses covered by the NLRB have more protections for engaging in collective action to change their working conditions whether they’re members of a union or not.
By contrast, workers who are under the oversight of the NMB are covered by a different law that doesn’t afford the same degree of protection.
Reuters contributed to this report.
