The National Labor Relations Board has determined that Tesla Inc. (NASDAQ: TSLA) violated labor laws by firing a union activist in 2017. The federal agency also ordered CEO Elon Musk to remove an “illegal tweet” in 2018 that threatened Tesla workers who hoped to unionize.
What happened: The NLRB instructed Tesla to reinstate union activist Richard Ortiz and indemnify him for lost earnings, other benefits and adverse tax consequences after his resignation. Ortiz was part of an organizing campaign, “Fair Future at Tesla”.
The NLRB said Tesla broke the law by “coercively interrogating” workers who tried to unionize and by preventing them from speaking to the media without explicit written permission from the company.
Tesla has been ordered to revise a confidential agreement it offers employees and to inform them of their protected rights, publishing notices across the country and holding meetings at its plant in Fremont, California.
In addition, Musk was asked to remove his 2018 tweet that “illegally threatened” workers. The CEO’s tweet was in response to workers’ increasing efforts to form a union with United Auto Workers at the Fremont plant.
“Nothing prevents the Tesla team in our factory from voting for the union. You could do that tmrw if you wanted. But why pay union dues and give up stock options for nothing? Our safety record is 2 times better than when the factory was UAW and everyone already receives medical assistance, ”said Musk in the tweet.
See also: Tesla Fremont Factory recorded 450 COVID-19 cases after controversial reopening in May: report
Why does it matter: Tesla said its factories should remain without unions and oppose workers’ efforts to unionize. Musk repeatedly clashed with workers at the Fremont factory for his pro-union stance and on working conditions at the factory.
Musk being told to delete his tweet is also significant, as Tesla counts his CEO’s tweets as an official communication from the company.
Share price: Tesla’s shares closed 1.6% higher on Thursday at $ 640.39 and 0.4% more in the after-hours session.
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