A federal appeals court in New Orleans has issued a ruling in a case involving Tesla CEO Elon Musk's 2018 social media post that was deemed controversial by union leaders. The post, made on Twitter, was seen as a potential threat to employee stock options during United Auto Workers organizing efforts at a Tesla facility in Fremont, California.
The post in question, dated May 20, 2018, stated that there was nothing stopping Tesla employees from voting for a union but questioned the need to pay union dues and give up stock options. Musk highlighted the safety record at the plant and compared it favorably to when it was under the UAW.
The National Labor Relations Board initially ruled the post as an illegal threat, leading to a legal battle between Tesla and the NLRB. After a series of appeals and hearings, the full 5th U.S. Circuit Court of Appeals ultimately voted 9-8 in favor of Tesla and Musk. The court determined that Musk's tweets were protected under the First Amendment as free speech and did not constitute unprotected communication.
As a result of the ruling, the NLRB was instructed to reconsider its order for Tesla to rehire a fired employee with back pay. The court found that there was no evidence of ill will towards the union in the employee's termination and that the supervisor's attitude was not relevant to the decision.
The case has now been sent back to the NLRB for further action, and it remains unclear if there will be an appeal to the U.S. Supreme Court. The union has not yet indicated its next steps, but President Shawn Fain referenced the case in a recent address to union members, criticizing Musk's anti-union stance and alleged political contributions.
Overall, the court's decision marks a significant development in the ongoing debate over labor rights and employer speech, particularly in the context of social media communication and union organizing efforts.
