Tesla Found Guilty of Unionbusting

By Kris LaGrange - UComm Blog, March 26, 2021

2018, Tesla CEO Elon Musk wrote on Twitter “Nothing stopping Tesla team at our car plant from voting union. Could do so tmrw if they wanted. But why pay union dues & give up stock options for nothing?” That tweet began an investigation into the company by the NLRB into union-busting at the company.

Now three years later, the board has found that Musk not only violated federal labor law with that tweet but that he also illegally fired an employee, Richard Ortiz for protected union activity. Ortiz was part of a campaign called “Fair Future at Tesla” which is an ongoing campaign by the UAW to organize the electric car company.

In their decision, the NLRB found that Musk’s tweet went above a typical statement that the company wants to stay union-free and was seen as threatening. This was exacerbated by the fact that Tesla considers communications from Musk, who founded the company, as official company communications. It is illegal to threaten to take away pay or benefits from workers if they are found to be organizing a union.

In their decision, the NLRB ordered Tesla to offer Ortiz his job back and compensate him for lost earnings, benefits, and any adverse tax consequences that resulted from his firing. Tesla is also required to revise their confidentiality agreements that are given to employees to take out a section that bars workers from speaking to the media without explicit written permission from the company. National labor law “protects employees when they speak with the media about working conditions, labor disputes, or other terms and conditions of employment,” the NLRB noted.

The NLRB is also requiring Tesla to post notices nationwide and hold meetings at their main US car plant in Fremont to inform workers of their protected rights. At these meetings, Musk or a “board agent” in the presence of Musk, will have to read the notice to workers, including security guards, managers, and supervisors.

The decision from the NLRB was largely in line with a similar decision against Tesla by an administrative judge in September of 2019. Tesla decided to fight the administrative judge’s decision and bring it all the way to the full board.

“This is a great victory for workers who have the courage to stand up and organize in a system that is currently stacked heavily in favor of employers like Tesla who have no qualms about violating the law,” said UAW Vice President Cindy Estrada, Director of the UAW Organizing Department. “While we celebrate the justice in today’s ruling, it nevertheless highlights the substantial flaws in US labor law. Here is a company that clearly broke the law and yet it is three years down the road before these workers achieved a modicum of justice.”

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author.