Today the National Labor Relations Board (NLRB) ruled that Tesla violated labor laws when firing an employee for unlawful reasons. The labor law violation came when the EV giant fired an employee over what they claim was union support as well as a Tweet from Elon Musk himself.
A few years ago, several Tesla employees accused the California-based automaker of participating in some illegal anti-union efforts which lead to United Auto Workers (UAW) attempt at unionizing the Fremont factory.
Not long after, the National Labor Relations Board (NLRB) caught wind of the claims against Tesla and started a case against the automaker for terminating employees that participated in the unionization efforts and engaged in illegal “coercive actions.”
After years of investigation, the NLRB released its ruling today and found that Tesla did indeed violate US labor laws.
According to the NLRB, the actions deemed anti-union are as follows: “Having found that Respondent has engaged in certain unfair labor practices, I shall order it to cease and desist therefrom and to take certain affirmative action designed to effectuate the policies of the Act. Having found that Respondent has violated Section 8(a)(1) of the Act by maintaining and enforcing a rule o February 10 and May 24, 2017, that, in the absence of legitimate business reasons, prohibits off-duty employees from distributing union literature in the employees’ parking lot, I shall order that Respondent rescind the rule. Having found that Respondent has violated Section 8(a)(1) of the Act by promulgating a rule on March 23, 2017, prohibiting employees from distributing union stickers, leaflets, and pamphlets without first obtaining permission, and threatening discipline if failing to do so, I shall order that Respondent rescind the rule. Having found that Respondent has maintained and enforced a rule in August 2017 prohibiting employees from wearing union insignia showing support for the Union or any other labor organization, I shall order that Respondent rescind the rule. Having found that Respondent has violated Section 8(a)(1) of the Act by promulgating a rule in October 2017, regarding Workday in response to protected concerted activity, I shall order that Respondent rescind the rule.”
In addition, the NLRB concluded that Tesla treated employees who engaged in supporting a unionization efforts at its Fremont factory unfairly: “Respondent, having discriminatorily disciplined Jose Moran, must rescind the disciplinary action and remove all references from his personnel files. Respondent, having discriminatorily terminated Richard Ortiz, must offer him reinstatement and make him whole for any loss of earnings and other benefits. Backpay shall be computed in accordance with F. W. Woolworth Co., 90 NLRB 289 (1950), with interest at the rate prescribed in New Horizons, 283 NLRB 1173 (1987), compounded daily as prescribed in Kentucky River Medical Center, 356 NLRB 6 (2010). In accordance with King Soopers, Inc., 364 NLRB No.93 (2016), Respondent shall compensate Richard Ortiz for his search-for-work and interim employment expenses regardless of whether those expenses exceed interim earnings, and such expenses shall be calculated separately from taxable net backpay, with interest at the rate prescribed in New Horizons, supra, compounded daily as prescribed in Kentucky River Medical Center, supra.”
Tesla has yet to comment on the matter, however, when allegations first surface, the automaker said that the claims were “without merit.” no longer has a press relations department to comment on the ruling, but it did when the allegations were first brought up and believed that the claims were “without merit.”
The NLRB is asking Tesla CEO Elon Musk to delete a tweet where he suggested that employees who unionize could potentially have their stock options taken away. The tweet in question:
With its ruling, the NLRB is requiring Tesla to post a rather long notice to employees regarding the matter:
If you’d like to know more about the NLRB’s ruling or would like to see more evidence from the case, you can read all the details in the document below: