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SpaceX Wins: Labor Board Drops Case, Cites Railway Act

Ars Technica - All content •
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The National Labor Relations Board has dismissed its case against SpaceX after determining the company falls under the jurisdiction of the Railway Labor Act rather than the National Labor Relations Act. This decision came after the National Mediation Board ruled that SpaceX qualifies as a "common carrier by air" and "a carrier by air transporting mail" for the US government. The ruling effectively removes SpaceX from NLRB oversight.

SpaceX had faced an NLRB complaint alleging it illegally fired eight employees who criticized CEO Elon Musk in an open letter. The complaint sought reinstatement, back pay, and letters of apology. However, SpaceX argued it should be regulated under the Railway Labor Act, which governs railroad and airline companies and has different labor rules, including stricter strike limitations.

The decision represents a significant victory for Musk's company, which had also challenged the NLRB's constitutionality. Attorneys for the fired employees called the NMB's expansion of jurisdiction to space travel "alarming" and "contrary to law and public policy," arguing that the Railway Labor Act does not apply to space operations.