Court Rules With SpaceX in Case Seeking to Gut NLRB, in Blow to Workers’ Rights

A court ruled with SpaceX and two other companies on Tuesday in their case arguing that the structure of the National Labor Relations Board (NLRB) is unconstitutional, in a decision that could have seismic implications for workers’ rights for years to come.

In its ruling, U.S. Court of Appeals for the Fifth Circuit said that safeguards for NLRB board members and administrative law judges for the NLRB are unconstitutional. The NLRB board makes key determinations on federal labor law, and administrative law judges adjudicate cases regarding unfair labor practices.

The ruling suspends unfair labor practice proceedings against Elon Musk’s SpaceX and co-plaintiffs Energy Transfer and Findhelp. Donald Trump appointee Judge Don Willett wrote in his decision for the court that it constitutes irreparable harm for the companies to be subject to such cases “[w]hen an agency’s structure violates the separation of powers.”

The NLRB will likely appeal the decision. The Fifth Circuit is notoriously right wing, and has spent years publishing extremist right-wing decisions that have pushed issues like abortion rights and affirmative action before the Supreme Court.

The decision is a major blow to workers’ rights at a time when the Trump administration is conducting a major overhaul of union and worker protections, including moves to gut the NLRB; and shortly after the major unionization wave in recent years that saw both a rise in union filings and a rise in unfair labor practice filings.

“The decision seems to guarantee that companies in the Fifth Circuit — which covers Texas, Louisiana, and Mississippi — can get district courts to block unfair labor practice cases by filing constitutional lawsuits against the agency,” wrote Bloomberg Law reporter Robert Iafolla.

SpaceX has faced numerous accusations of unfair labor practices, including a complaint last year from the NLRB alleging that the company illegally fired eight employees who signed a letter criticizing a sexist environment within the company.

The Fifth Circuit’s decision has been criticized by labor advocates, who say that it gives employers enormous power over workers.

“This is what oligarchy looks like: Today, 2 Trump judges ruled that the NLRB’s structure is unconstitutional giving Elon Musk, worth $410 billion, and other union busters the absolute power to exploit workers and violate labor law with impunity,” said Sen. Bernie Sanders (I-Vermont) on social media on Wednesday.

“This disastrous decision cannot stand,” Sanders went on.