The National Labor Relations Board (NLRB) concluded that Tesla violated US labor laws by firing a union activist and threatening workers’ benefits through a tweet from CEO Elon Musk. As a result, the company must reinstate the dismissed worker and force Musk to exclude the tweet in question, Bloomberg reported.
Musk’s tweet of May 2018 immediately drew attention as a possible violation of labor laws. In it, he said that “nothing prevents the Tesla team in our factory from voting for the union. I could do that if I wanted to. But why pay union dues and give up stock options for nothing?” Tesla argued that the tweet pointed out that union members from other automakers do not receive stock options. However, former NLRB president Wilma Liebman argued that Tesla workers are likely to see things differently. “The employee will hear this as, ‘If I vote for unionization, stock options will no longer be an option,'” she said. Bloomberg at the time.
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.
– Elon Musk (@elonmusk) May 21, 2018
In its decision, the NLRB said that the dismissed employee, Richard Ortiz, should be rehired with all references to disciplinary action removed from his personal files. The company must also “compensate you for any loss of income and other benefits”.
In addition, he ordered Tesla to make Musk delete the tweet in question and post a long notice to employees about the decision, declaring his rights to “form, join or help a union”. The notice must also state that workers will not be dismissed or punished for such activities and that the company will hire Ortiz back in return. Although an administrative judge recommended that Musk read the notice aloud to workers at a meeting, the NLRB said the written notice would be sufficient.
Tesla hasn’t commented yet, but NLRB’s decisions can be appealed to a federal court. However, the board cannot impose punitive damages or hold executives accountable for breaking the law, Bloomberg noticed. As of today (March 26 at 7:01 am Eastern time), Musk’s tweet is still live.
The decision also caught the attention of union leaders and defenders, who said it was too late. “This is a company that has clearly broken the law, but these workers still have three years to reach a minimum of justice,” said Cindy Estrada, vice president of United Autoworkers Bloomberg.