A Federal Appeals Court of the United States is all set to review Elon Musk’s tweet on Tesla employees’ stock options if they join a union. Musk’s tweet was criticized as a threat to discourage employees from joining a union. The court will reconsider its decision after Tesla’s request. 16 judges will take part in this review.
In March, a panel of three judges upheld the National Labor Relations Board’s ruling. Both the bodies held that Musk’s tweet was indeed a threat against joining unions at Tesla’s plant in California.
The much-disputed tweet stated that employees could vote for a union, but they would lose stock options. Employees choosing to join unions would also have to pay union fees for nothing. In a tweet on May 20, 2018, Musk mentioned that employees could vote for a union but questioned the need to pay union dues and give up stock options. The court ruled that the tweet implied a threat to remove stock options as retaliation for unionization.
Elon Musk has been seen criticizing the Biden administration on multiple occasions. The Tweet takes a hit at the Federal Trade Commission of the US.
Tesla argues that Musk’s tweet is a matter of free speech. They have strongly held that he did not intend to threaten anyone. The NLRB’s response to these claims is yet to be seen.
The National Labor Relations Board’s order to delete Elon Musk’s tweet about Tesla employees joining a union has been upheld by three judges of the 5th U.S. Circuit Court of Appeals. The court also supported the decision to rehire an employee that Tesla had fired earlier. The said employee would be receiving back pay.
The case originated during UAW’s efforts to organize Tesla’s facility in California. This happened well before Musk bought the social media platform in 2022.
The panel also found evidence that the terminated employee was fired for lying about protected union activity not related to job performance or legitimate business interests.
The 5th Circuit currently has 16 full-time judges, with one vacancy pending Senate confirmation. Tesla argued that the panel’s decision conflicted with free speech protections under the First Amendment, citing Supreme Court and appellate court precedents.
Elon Musk’s use of Twitter has caused trouble in the past, leading to fines for misleading tweets about taking Tesla private. He remains one of the world’s wealthiest individuals.
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