U.S. Senators Richard Blumenthal (left) and Elizabeth Warren.
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Sens. Elizabeth Warren (Mass.) and Richard Blumenthal (D-Conn.) on Wednesday launched an investigation with the National Labor Relations Board over the agency’s decision to drop charges against Elon Musk’s retaliatory firing against SpaceX, according to communications first obtained by CNBC.
SpaceX is aiming to go public in June and is reportedly aiming for a valuation of $2 trillion.
Under the Biden administration, the NLRB accused the aerospace and defense company of illegally firing employees in retaliation for criticizing Musk in an open letter, alleging sexist conduct on Musk’s part and a widespread culture of sexual harassment at SpaceX.
The NLRB dismissed the charges in February, citing jurisdictional issues.
According to communications first obtained by CNBC, Warren and Blumenthal have requested information and records from the NLRB to determine whether the agency dropped the charges based on “political considerations rather than the facts at hand,” effectively following the wishes of Musk, who spent about $300 million to return President Trump to the White House.
When the NLRB dismissed charges against SpaceX earlier this year, it referred the employees’ complaints to the National Arbitration Board, arguing that the company should be regulated under the Railroad Labor Act, which governs labor relations for railroads and airlines.
In an April 15 letter to the NLRB, Warren and Blumenthal wrote, “By promoting this agency change, the NLRB has effectively killed the case. These workers’ wrongful termination charges cannot proceed in the NMB because the NMB’s governing law does not protect the same types of concerted activities as the NLRB.”
It also said that part of NMB’s claims of jurisdiction over SpaceX includes the “unreasonable” claim that SpaceX is “a carrier that transports mail by air on behalf of or under contract to the United States Government” because SpaceX sometimes delivers mail to the International Space Station on behalf of NASA.
The senators asked the NLRB to provide information and records by April 29 explaining, among other things, why it changed its position regarding jurisdiction, a list of all communications between the agency and Musk or his agents, and any precedent for counting rocket companies like SpaceX as air mail carriers.
In 2024, SpaceX filed a federal lawsuit alleging that the NLRB’s structure is unconstitutional and that the agency should not be allowed to take enforcement actions regarding worker complaints of mistreatment by their employers. The lawsuit comes after nine SpaceX employees claimed they were fired for writing an open letter to management.
Mr. Musk has long clashed with union advocates, including at car company Tesla. The NLRB ruled in 2021 that Tesla and Musk violated labor laws when they fired a union activist, and in 2018, Musk tweeted, “There’s nothing stopping Tesla teams at car factories from voting for a union. If they want, they can. But why pay union dues and give up stock options for free?”
CNBC has reached out to the NLRB and SpaceX for comment.
