In a recent development, rocket and satellite manufacturer SpaceX has been accused by a U.S. labor agency of wrongfully terminating eight employees for circulating a letter that criticized the company's CEO, Elon Musk. The National Labor Relations Board (NLRB) filed a complaint against SpaceX, alleging that the company violated workers' rights under federal labor law by firing employees who were advocating for better working conditions.

The letter, which was sent to SpaceX executives in June 2022, focused on a series of sexually suggestive tweets made by Musk since 2020. The employees argued that Musk's statements were not in line with the company's policies on diversity and workplace misconduct, and they called on SpaceX to condemn his behavior. The complaint also accuses SpaceX of interrogating employees about the letter, disparaging those involved, and threatening to fire anyone engaged in similar activities.

Deborah Lawrence, one of the terminated employees, described SpaceX as having a "toxic culture" that tolerates harassment, particularly against women. Lawrence stated that the open letter was written out of concern for the company's mission and the well-being of its employees.

The NLRB's general counsel acts as a prosecutor and brings cases to the five-member board appointed by the president. If SpaceX does not reach a settlement, the case will proceed to an administrative judge, whose decision can be appealed to the board and then to a federal appeals court. A hearing for the case has been scheduled for March 5. If the NLRB finds that the firings violated labor law, it has the authority to order the reinstatement of workers and provide them with back pay. Additionally, if SpaceX is found guilty of violating the law, it may face harsher penalties in future cases before the board.

This case is the latest in a series of accusations against companies owned by Elon Musk, alleging violations of employees' rights under labor and employment laws. In November, Reuters reported on at least 600 previously unreported workplace injuries at SpaceX facilities, including serious incidents such as crushed limbs, electrocution, head injuries, and even a fatality. SpaceX did not respond to requests for comment on the findings.

Furthermore, in October, the NLRB issued a complaint against X, the social media service formerly known as Twitter and owned by Musk, accusing the company of illegally firing an employee over tweets that challenged its return-to-office policy. X has denied any wrongdoing. Tesla Inc., where Musk serves as CEO, has also faced numerous NLRB complaints and lawsuits alleging widespread race discrimination at its factories during a union organizing campaign. Tesla has maintained that it does not tolerate discrimination.

The recent allegations against SpaceX highlight a pattern of controversial management practices within Musk's companies. Musk has previously taken a tough stance towards employees, such as laying off a significant portion of the workforce at Twitter shortly after acquiring the company in 2022. He also fired approximately two dozen internal critics at Twitter, resulting in a substantial reduction in the company's employee count. Tesla has also been embroiled in a lengthy legal battle with the NLRB over allegations of firing an employee for engaging in union activity, with the board ruling in favor of the worker and ordering Tesla to reinstate them with back pay.

In addition to labor-related issues, SpaceX has faced other legal challenges. In August, the company was sued by the Justice Department for allegedly discriminating against asylum-seekers and refugees in its hiring practices. However, a judge has since issued an injunction blocking the case from progressing. Moreover, in December 2021, a former SpaceX employee published an essay detailing instances of harassment and groping within the company, which she claimed went largely unaddressed after being reported. This prompted SpaceX to announce an audit of its harassment policies. Furthermore, Business Insider reported in the following spring that SpaceX had paid $250,000 in 2018 to settle a claim in which an employee accused Musk of exposing himself and making sexual propositions. Musk denied the accusation and made light of it on Twitter.

The case against SpaceX serves as another example of the ongoing scrutiny faced by Musk's companies regarding their treatment of employees and adherence to labor laws. The outcome of this case will have significant implications for SpaceX and potentially impact future cases involving the company and the NLRB.