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Tesla and Musk Lose Ruling on Factory Union Issues [1]

['Noam Scheiber']

Date: 2023-03-31

A federal appeals court on Friday affirmed a finding that Tesla illegally fired an employee involved in union organizing, and that the company’s chief executive, Elon Musk, had illegally threatened workers’ stock options if they chose to unionize.

The opinion, by three judges on the U.S. Court of Appeals for the Fifth Circuit, allows the National Labor Relations Board to enforce a 2021 order requiring Tesla to reinstate, with back pay, the employee, Richard Ortiz, and Mr. Musk to delete a Twitter post suggesting workers could lose stock options if they unionize.

“I look forward to returning to work at Tesla and working with my co-workers to finish the job of forming a union,” Mr. Ortiz said in a statement.

Tesla did not immediately respond to a request seeking comment on the ruling.

The finding comes as other companies run by Mr. Musk have had workers raise concerns about labor law violations. Last year, eight former employees at SpaceX, the rocket manufacturer led by Mr. Musk, filed charges of unfair labor practices, saying the company had retaliated against them for helping to write a letter asking for better enforcement of its stated policies on sexual harassment. The cases are pending.

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[1] Url: https://www.nytimes.com/2023/03/31/business/tesla-union-musk-twitter.html

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