A U.S. appeals court said on Friday Tesla Inc CEO Elon Musk violated federal labor law by tweeting that employees of the electric vehicle maker would lose stock options if they joined a union.
CEO Elon Musk violated federal labor law by tweeting that employees of the electric vehicle maker would lose stock options if they joined a union.
The New Orleans-based 5th U.S. Circuit Court of Appeals upheld a decision by the U.S. National Labor Relations Board that said the 2018 tweet amounted to an unlawful threat that could discourage unionizing and ordered Musk to delete it. Amid an organizing campaign at Tesla's Fremont, California, plant by the United Auto Workers union, Musk tweeted: "Nothing stopping Tesla team at our car plant from voting union ... But why pay union dues & give up stock options for nothing?"UAW President Shawn Fain applauded the decision in a statement but said it also highlights "our broken US labor law."
"Here is a company that clearly broke the law and yet it is several years down the road before these workers have achieved a modicum of justice,” Fain said.a lawsuit from investors over another Musk tweet from 2018 saying funding was secured to take the company private, and a British cave explorer unsuccessfully sued Musk for calling him a "pedo guy" on Twitter.
Reporting by Daniel Wiessner in Albany, New York; Editing by Alexia Garamfalvi, Matthew Lewis and Muralikumar AnantharamanDan Wiessner reports on labor and employment and immigration law, including litigation and policy making. He can be reached at [email protected].
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