Elon Musk violated labor laws with 2018 tweet, Tesla ordered union activist reinstated

The National Labor Relations Board has ruled that Tesla Inc. (NASDAQ: TSLA) violated labor laws when he fired a union activist in 2017. The federal agency also ordered CEO Elon Musk to remove an “illegal tweet” in 2018 that threatened Tesla workers in hopes of unionizing.

What happened: The NLRB ordered Tesla to rehire union activist Richard Ortiz and compensate him for the loss of income, other benefits, and adverse tax consequences after his firing. Ortiz was part of an organizing campaign, “Fair Future at Tesla.”

The NLRB said Tesla violated the law by “coercively questioning” workers who tried to unionize and by preventing them from speaking to the media without explicit written permission from the company.

Tesla has been directed to review a confidentiality agreement that provides employees and inform them of their protected rights by posting notices across the country and holding meetings at its Fremont, California factory.

Additionally, Musk has been asked to delete his 2018 tweet that “illegally threatened” workers. The CEO’s tweet was in response to increased efforts by workers to form a union with the United Auto Workers at the Fremont factory.

“Nothing is stopping the Tesla team at our auto plant from voting for the union. I could do it tmrw if they wanted. But why pay union dues and give up stock options for nothing? Our safety record is 2 times better than when the plant was UAW and everyone already receives medical care, ”Musk said in the tweet.

See Also: Tesla Fremont Factory Recorded 450 COVID-19 Cases After Controversial May Reopening – Report

Because it is important: Tesla has said its factories must remain union-free and oppose workers’ efforts to unionize. Musk has repeatedly clashed with workers at the Fremont factory over their pro-union stance and over working conditions at the factory.

Musk’s order to delete his tweet is also important, as Tesla counts its CEO’s tweets as official company communication.

Price action: Tesla shares closed 1.6% higher Thursday at $ 640.39 and added 0.4% in the after-hours session.

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