Feb 9 (GeokHub) - The U.S. labor board has dropped a long-running legal case against Elon Musk’s SpaceX and indicated it will no longer pursue future actions against the company, according to a report published Monday.
The decision ends a dispute that began more than two years ago, when the National Labor Relations Board accused SpaceX of unlawfully firing eight engineers over their involvement in an internal letter critical of Musk’s leadership.
Jurisdiction Shift Cited
In a letter sent to attorneys representing the former employees, the labor board said it no longer has authority over SpaceX, citing a recent opinion by the National Mediation Board. That agency concluded SpaceX engineers fall under its jurisdiction rather than the labor board’s.
As a result, the labor board said it lacked the legal authority to continue the case and formally dismissed the complaint.
SpaceX and the National Mediation Board did not immediately comment, while the labor board declined to respond to questions about the decision.
Legal Momentum Favors SpaceX
The move follows a broader legal trend favoring SpaceX. Last year, a federal appeals court ruled that the structure of the labor board was likely unconstitutional and temporarily blocked it from pursuing enforcement actions against SpaceX and other companies.
The ruling weakened the agency’s ability to regulate certain employers and added momentum to challenges brought by Musk and others.
Worker Protections in Question
The National Mediation Board oversees labor relations for airlines and railroads, while the labor board typically regulates most private-sector employers, including large manufacturers.
Workers under the labor board’s authority are protected by laws that allow broad collective action, whether unionized or not. Those governed by the mediation board fall under a different legal framework that does not provide the same range of protections.
The shift raises questions about labor rights and oversight at SpaceX as the company continues to expand its role in aerospace and space exploration.
