The Case of SpaceX, Amazon, and the Court of Appeals for the Inadmissibility of the National Labor Relations Act (NLRB)
The NLRB says it feels confident in a 1937 Supreme Court ruling on the constitutionality of the National Labor Relations Act. The authority of the National Labor Relations Board to enforce workers’ rights is challenged by some large companies every now and then in order to avoid being held accountable for violating the National Labor Relations Act. The results of these challenges can be delayed, but that ultimately justice does prevail.
The lawsuits brought by Amazon and SpaceX came after the NLRB issued complaints of its own. The agencies found that the companies had violated their employees’ rights.
George W. Bush-appointed Judge Priscilla Richman similarly pressed SpaceX’s counsel Michael Kenneally about why the company rushed to an appeal, rather than letting the case progress in a lower court. Kenneally said SpaceX waited as long as it felt it could to bring its challenge and accused the government of leaning on procedural arguments because it couldn’t defend the NLRB’s constitutionality. Graves seemed skeptical. He said it looked like the argument was that procedure didn’t matter if he won on the merits.
Some people think the National Labour Relations Board has taken an overly aggressive approach to protecting workers’ rights since Joe Biden took the reins four years ago.
Now, SpaceX and Amazon are at the forefront of a corporate-led effort to monumentally change the labor agency. On Monday, attorneys for the two companies will try to convince a panel of judges at the Fifth Circuit Court of Appeals that the labor agency, created by Congress in 1935, is unconstitutional.
A ruling in favor of the corporations could make it harder for workers to form unions and move forward with collective action to improve working conditions.
Complicating matters is the fact that President-elect Donald Trump has named SpaceX founder and CEO Elon Musk to co-lead a new commission focused on dismantling government bureaucracy, slashing spending and jobs. Whether the NLRB is one of the agencies Musk will advise on remains unclear.
At Amazon, the issue was the company’s refusal to collectively bargain with the Amazon Labor Union. Workers at Amazon’s Staten Island, New York warehouse voted to unionize.
The National Labor Relations Board: Amidst the litigations, and if so, what’s next? The general counsel says she will not follow the law
The General Counsel for the National Labor Relations Board called the lawsuits a distraction and pointed out the agency’s 90-year history of governing labor-management relations.
“We are trying to hold violators of our statute accountable,” she said at the National Press Club in October. “It would be chaos if the agency was not allowed to perform its functions and do it properly.”
The new tone for enforcement is expected to be set by someone friendly to employers, who will replace Abruzzo. Peter Robb was Trump’s choice for the job back in the day when he was the lead counsel for Ronald Reagan during the air traffic controllers’ strike.
The general counsel of both companies are expected to not fight any rulings favorable to them. Similar lawsuits in other countries could result in conflicting court decisions.
