Trending Story: Court Determines That Elon Musk Violated The Law By Threatening Tesla Employees' Stock Options

According to an entrepreneurng report, Elon Musk broke federal labor law by tweeting that Tesla workers would lose stock options if they joined a union, as stated by the US appeals court.

“Appellate judges maintain the earlier decision, noting the CEO’s tweet intended at Fremont employees who desired to join the union as an “implied threat.”

The 5th US Circuit Court of Appeals in New Orleans upheld the US National Labor Relations Board’s finding that Musk’s 2018 tweet constituted an illegal threat that would deter unionization and ordered Musk to remove it.

The United Auto Workers (UAW) union was conducting an organizing drive at Tesla’s Fremont, California, plant when Musk tweeted: “Nothing stopping Tesla team at our car plant from the voting union… But why should I pay union dues and forfeit my stock options?

“Shawn Fain, president of the UAW, praised the choice but added that it also highlighted “our dysfunctional American labor legislation.”

The corporation in question broke the law, yet it took years for the workers to receive even a minimal amount of justice, according to Fain.

In February, Tesla won a lawsuit from investors over a Musk post from 2018 that claimed the money was in place for the business to go private; meanwhile, a British cave explorer sued Musk in vain for referring to him as a “pedo person” on Twitter.

With $44 Billion, Musk Acquired Twitter In 2022

In the argument on Friday, Tesla had contended that the tweet about organizing wasn’t a threat and was instead just a reflection of the reality that union employees at other automakers weren’t given stock options.

But a three-judge panel had different ideas.

Conclusion

In a different instance in 2022, the labor board found that Tesla had broken the law by forbidding employees at the Fremont facility from donning shirts that supported the union cause. The business is contesting that judgment.

Source: The Guardian