Amazon.com Inc. AMZN and Elon Musk’s SpaceX may encounter obstacles in their attempts to block the National Labor Relations Board or NLRB cases.
What Happened: On Monday, a panel of U.S. judges suggested that both companies might have prematurely brought their challenges to the NLRB’s structure to the 5th U.S. Circuit Court of Appeals, reported Reuters.
The panel questioned whether Amazon and SpaceX should have allowed more time for Texas judges to rule before filing appeals.
The legal challenges, if successful, could potentially weaken the NLRB’s powers. Even if they fail, some have already managed to indefinitely delay NLRB cases.
Amazon and SpaceX are separately trying to block NLRB cases accusing them of illegal labor practices.
Amazon is fighting a case related to its first-ever union at a warehouse in New York City. SpaceX is facing accusations of firing engineers who criticized Musk — a claim the company denies.
Amazon and SpaceX argue that federal judges in Texas “effectively denied” their petitions to block NLRB cases by not ruling on them promptly. However, the judges in both cases ruled that the lawsuits did not belong in Texas.
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Why It Matters: This development follows a series of legal disputes involving the NLRB and major corporations.
Other companies, including Chipotle Mexican Grill CMG, Stellantis STLA, and Apple Inc. AAPL, have also faced NLRB complaints for alleged labor violations.
Earlier this year, Amazon argued that the NLRB was unconstitutional in response to a case accusing the company of unlawfully retaliating against workers who voted to unionize.
In October, the NLRB charged Amazon for failing to acknowledge and bargain with the Teamsters Union.
In SpaceX’s case, NLRB alleged that the company violated federal labor laws by firing employees who, in June 2022, circulated a letter criticizing Musk's controversial tweets and calling him a “distraction and embarrassment.”
Price Action: Amazon shares closed Monday's session down 0.45% at $201.70. In after-hours trading, the stock gained slightly, reaching $201.89 at the time of writing, according to Benzinga Pro.
Photo Courtesy: T. Schneider On Shutterstock.com
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