Top aerospace company SpaceX is now embroiled in legal proceedings after allegedly firing eight engineers who opposed CEO Elon Musk and accused him of sexist behavior, Reuters reports.
The case, scheduled before National Labor Relations Board (NLRB) Administrative Law Judge Sharon Steckler in Los Angeles, prompted SpaceX to file a lawsuit seeking to halt the proceedings, citing constitutional violations.
The NLRB contends that SpaceX violated U.S. labor law by terminating the engineers after they circulated a letter alleging Musk's sexist behavior and asserting that the company tolerated discrimination against women.
SpaceX's Possible Labor Violations
According to the NLRB's general counsel, the engineers' dismissal contravened the National Labor Relations Act, which safeguards workers' rights to advocate for better working conditions collectively.
This development underscores SpaceX's ongoing legal battles, with the engineers also lodging complaints with a California civil rights agency, accusing the company of endorsing sex discrimination and retaliating against dissenting workers.
SpaceX vehemently denies any wrongdoing, challenging both the substance of the allegations and the legitimacy of the NLRB's enforcement procedures.
Elon Musk is also being investigated by a California civil rights agency over allegations of unaddressed bias and sexual harassment against female employees.
What's Next?
Tuesday's hearing before Judge Steckler is expected to primarily address procedural matters, including the scope of subpoenas for information from SpaceX and setting a schedule for future hearings.
While SpaceX's legal team, led by John Ring of law firm Morgan Lewis & Bockius, prepares for the proceedings, the company's bid to halt the case in Texas was denied, prompting appeals and jurisdictional disputes.
If SpaceX is found culpable, potential consequences include reinstatement of the terminated engineers and compensation for lost pay and benefits. However, the company's legal maneuvers suggest a protracted legal battle lies ahead, with implications for both labor relations within SpaceX and the broader regulatory landscape governing corporate conduct.
In Other News
In a related development, Elon Musk faces further legal woes as four former top Twitter executives accuse him of withholding over $128 million in severance pay after he fired them upon acquiring the social media platform, subsequently rebranded as X.
The executives allege that Musk falsely accused them of misconduct and reneged on severance pay promised under Twitter's plans, each claiming entitlements amounting to millions of dollars.
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