What Was SpaceX’s Argument Against the US Labor Board and Why Did It Fail?

SpaceX is now facing some legal trouble after the firing of eight engineers who had disapproved of Elon Musk and claimed the firm was permitting discrimination against women. The National Labor Relations Board (NLRB) made a case against SpaceX asserting that the dismissal of the engineers violated labor laws. In response, SpaceX came out to a US appeals court trying to block the NLRB from pursuing its case stating that the board’s structure was unconstitutional in nature.

What was SpaceX’s Argument Against the NLRB?

In effect, SpaceX said that the NLRB’s enforcement process is unconstitutional because the members of the board are shielded by the president and cannot be removed at will. The company also argued that since a judge failed to immediately rule on its request for a preliminary injunction, SpaceX wanted the court to issue an order that would stop the NLRB from proceeding with its claims before a full hearing.

Why SpaceX’s Argument Failed?

A 3 judge panel from the 5th US Circuit Court of Appeals ruled in favor of the NLRB stating it was too soon for the case to be taken to the appeals court by SpaceX. The court said that SpaceX was not able to show significant harm to warrant an emergency appeal. The case now would go back to a lower court that may send it to California where SpaceX is based.