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Business News/ Companies / People/  Why this tweet from Elon Musk has got Tesla into a legal tussle?
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Why this tweet from Elon Musk has got Tesla into a legal tussle?

The National Labour Relations Board found that a May 2018 tweet by Musk unlawfully threatened employees with the loss of stock options if they decided to be represented by a union

(FILES) In this file photo taken on December 01, 2020 SpaceX owner and Tesla CEO Elon Musk (R) gestures as he arrives on the red carpet for the Axel Springer Awards ceremony. (AFP)Premium
(FILES) In this file photo taken on December 01, 2020 SpaceX owner and Tesla CEO Elon Musk (R) gestures as he arrives on the red carpet for the Axel Springer Awards ceremony. (AFP)

Tesla is asking an appeals court to set aside a federal agency's order that a Twitter post discouraging union organising be deleted from CEO Elon Musk's account.

The National Labour Relations Board found that a May 2018 tweet by Musk unlawfully threatened employees with the loss of stock options if they decided to be represented by a union. The board ordered that the post be deleted.

Among other things, the lengthy March 25 board ruling also orders Tesla to reinstate an employee who was fired for union-organising activity and to give him back pay. The ruling also says Tesla must post a notice addressing unfair labour practices at the Fremont, California, plant, where the United Auto Workers had been trying to organize 10,000 workers.

Tesla's appeal was filed Friday at the 5th U.S. Circuit Court of Appeals in New Orleans.

Musk tweeted on May 20, 2018: “Nothing stopping Tesla team at our car plant from voting union. Could do so tmrw if they wanted. But why pay union dues and give up stock options for nothing? Our safety record is 2X better than when plant was UAW & everybody already gets healthcare."


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Published: 06 Apr 2021, 09:24 AM IST
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