A multi-hour conversation between Tesla Inc TSLA CEO Elon Musk and former President Donald Trump included comments about the electric vehicle company's allegations of firing employees who threaten to strike.
The United Auto Workers (UAW) is fighting back after the conversation with federal labor charges.
What Happened: The United Auto Workers filed federal labor charges against both Trump and Musk for their public comments in the X Spaces. The charges were made with the National Labor Relations Board.
Federal law prevents companies from firing workers who threaten to strike.
"You're the greatest cutter. I mean, I look at what you do. You walk in, you say: ‘you want to quit?' They go on strike – I won't mention the name of the company, but they go on strike. And you say, ‘That's OK, you're all gone. You're all gone,'" Trump said to Musk during the conversation.
The praise for Musk's management style could be in reference to Tesla employees in New York who were fired, in alleged retaliation for unionization efforts.
"When we say Donald Trump is a scab, this is what we mean," UAW President Shawn Fain said in a statement Tuesday, as reported by CNBC. "When we say Trump stands against everything our union stands for, this is what we mean."
Tesla has fought back on the allegations of employees in New York being fired for union activity.
"There is a false allegation that Tesla terminated employees in response to a new union campaign," Tesla previously said.
The company said the firings were in response to performance reviews completed every six months and the employees that would be terminated were determined before the union activity began.
Musk has clashed with unions in the past. In 2021, Tesla was found to be in violation of labor laws for firing a union activist. The National Labor Relations Board also found Musk in violation of labor laws for a 2018 tweet about employees joining unions and giving up stock options.
The Tesla CEO responded to Tesla influencer Sawyer Merritt‘s tweet announcing federal labor charges by sharing his perspective on the matter Tuesday.
"The last two UAW presidents went to prison for bribery & corruption and, based on recent news, it looks like this guy will join them!" Musk said of Fain.
Fain is currently under investigation over alleged retaliation against other union leaders.
Why It's Important: The accusations by the UAW come as the union has endorsed Vice President Kamala Harris in the 2024 presidential election. While Trump is unlikely to secure the UAW endorsement, he is actively courting skilled workers’ votes for the 2024 election, and the major union Teamsters has not yet endorsed a candidate.
The X Spaces conversation saw Trump continue his praise for Musk, which comes as he has attacked the electric vehicle sector.
"You do make a great product. Your product is incredible," Trump told Musk. "That doesn't mean everyone should have an electric vehicle."
Musk has been critical of unions in the past and suggested that Tesla’s lack of union support has contributed to a less favorable relationship with the White House and President Joe Biden.
"I don't like the UAW," Musk said in a past interview.
Musk has said he is not afraid of unions trying to get Tesla workers to unionize, as the company has the "highest pay in the auto industry."
The UAW led a strike against Ford Motor Company F, General Motors Company GM and Stellantis NV STLA last year in an effort to get higher pay and better benefits for union workers.
Fain said at the time that Tesla was not the enemy and suggested that Tesla workers would be "the UAW members of the future."
The latest saga between Tesla and unions will be closely monitored as it could factor into the 2024 presidential election and also potentially impact Tesla in the future.
TSLA Price Action: Tesla shares are up 4.7% to $206.81 versus a 52-week trading range of $138.80 to $278.98.
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