SpaceX and Amazon, led by Elon Musk and Jeff Bezos respectively, have found themselves on the same side of a legal battle against the National Labor Relations Board (NLRB). Both companies have filed lawsuits challenging the constitutionality of the federal agency, which is responsible for enforcing labor laws and resolving disputes between workers and employers. The lawsuits stem from separate issues each company has faced with the NLRB.
SpaceX’s complaint, filed in January, came after the agency accused the company of unlawfully firing employees who criticized Musk and allegedly surveilling worker activities. Amazon’s lawsuit relates to the company’s objections to a union election at a New York City warehouse in April 2022, where the NLRB was accused of improper interference and having a conflict of interest. On Monday, a panel of three judges in New Orleans heard oral arguments for both cases.
Attorneys for SpaceX and Amazon argued that the NLRB’s structure is unconstitutional, claiming that its board members are shielded from removal by the U.S. president. The companies also assert that the agency’s proceedings deprived them of the right to a fair trial.
SpaceX and Amazon’s NLRB dispute
The NLRB’s lawyer emphasized that both companies filed their appeals after lower courts did not provide rulings by requested deadlines. SpaceX’s attorney, Michael E. Kenneally, suggested that the government’s reliance on procedural objections indicated a weak legal stance.
However, Judge James E. Graves Jr. pushed back, stating that procedural aspects matter regardless of the case’s merit.
These cases could potentially reach the U.S. Supreme Court, which has a conservative majority and has issued significant rulings affecting federal agencies in the past. The outcomes of these lawsuits may have a substantial impact on the nearly century-old agency and its ability to enforce workers’ rights. NLRB General Counsel Jennifer Abruzzo stated before the hearing, “It is nothing new for big companies to challenge the authority of the NLRB to enforce workers’ rights so as to not be held accountable for their violations of labor law.”
As the legal battle unfolds, the future of labor law enforcement and the power of the NLRB hang in the balance, with potential implications for workers and employers across the United States.
