Get all your news in one place.
100’s of premium titles.
One app.
Start reading
ABC News
ABC News
Business

Elon Musk's 2018 tweet on Tesla union campaign violated labour laws, US court rules

Elon Musk made the tweet in 2018, prior to him taking ownership of the social media platform.  (Reuters: Dado Ruvic, file)

A US appeals court has ruled Tesla CEO Elon Musk violated federal labour law by tweeting that employees of the electric vehicle maker would lose stock options if they joined a union.

The New Orleans-based 5th US Circuit Court of Appeals upheld a decision by the US National Labor Relations Board that said the 2018 tweet amounted to an unlawful threat that could discourage unionising and ordered Mr Musk to delete it.

Amid an organising campaign at Tesla's Fremont, California, plant by the United Auto Workers (UAW) union, Mr Musk tweeted: "Nothing stopping Tesla team at our car plant from voting union … But why pay union dues & give up stock options for nothing?"

Tesla did not immediately respond to a request for comment.

UAW President Shawn Fain applauded the decision in a statement, but said it also highlights "our broken US labour law."

The appeals court said the tweet amounted to an implied threat to Tesla's Fremont workers in retaliation for unionisation. (AP: Jeff Chiu, file)

"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," Mr Fain said.

Mr Musk's prolific use of Twitter has landed him in legal trouble before.

Tesla in February defeated a lawsuit from investors over another Mr Musk tweet from 2018 saying funding was secured to take the company private, and a UK cave explorer unsuccessfully sued Mr Musk for calling him a "pedo guy" on Twitter.

Mr Musk purchased Twitter last year for $US44 billion ($66 billion).

In Friday's case, Tesla had argued the tweet about unionising was not a threat and merely reflected the fact that union workers at other auto companies did not receive stock options.

But a three-judge panel of the 5th Circuit disagreed.

"Substantial evidence supports the NLRB's conclusion that the tweet is an implied threat to end stock options as retaliation for unionisation," the 5th Circuit panel wrote.

The labour board in a separate case last year said Tesla violated labour law by prohibiting workers at the Fremont plant from wearing shirts supporting the union campaign.

The company is appealing that decision.

Reuters

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.