Comment / April 9, 2024

Elon Musk Wants to Gut the National Labor Relations Act

Elon Musk is challenging the New Deal legislation that established the National Labor Relations Board. Experts warn that this is “a serious threat.”

John Nichols
Elon Musk appears at the AI Safety Summit in Bletchley Park, on November 1, 2023, in Bletchley, England.(Photo by Toby Melville – Pool / Getty Images)

Elon Musk hates unions, with a white-hot passion that has rendered him delusional. In late November, at a New York Times DealBook Summit where the aspiring-to-be-rich gather to get pointers from the actually rich, the Tesla CEO explained that “I disagree with the idea of unions…. I just don’t like anything which creates a lords-and-peasants sort of thing.” In the same interview, Musk—a mega­-billionaire who famously threatened, in 2018, to take away the stock options of Tesla workers if they organized to exercise their collective-bargaining rights—griped, “I think the unions naturally try to create negativity in a company.”

When the second-richest man in the world is complaining that giving employees a voice in their workplace creates negativity and “a lords-and-peasants sort of thing,” we’re definitely through the looking glass. (See Bryce Covert’s new feature about the racism, sexism, and other workplace abuses that plague Tesla’s factory floors.) But Musk is hardly the first billionaire manufacturer to flip out over the prospect of having to treat workers with the respect that the law requires. Unfortunately, this billionaire isn’t satisfied to simply rant and rave; he’s now in the courts with a challenge to the New Deal legislation that established the National Labor Relations Board, conveniently filed before the NLRB hit his company SpaceX with a complaint in late March about unfair labor practices. If Musk gets his way, this scheme to gut the National Labor Relations Act of 1935 could destabilize a wide range of federal enforcement agencies that administer laws regulating everything from workplace safety to environmental conditions.

“It is a serious threat—very!” said Sara Nelson, the international president of the Association of Flight Attendants-CWA, AFL-CIO, speaking to The Nation. What makes it so serious is Musk’s deep-­pocketed legal strategy, which taps into the same line of thinking that animates Federalist Society memos and the game plans of Donald Trump and Steve Bannon for “the deconstruction of the administrative state.” And Musk’s strategy has drawn legal support from other union-busting, billionaire-run enterprises, including Jeff Bezos’s Amazon, as well as Starbucks and Trader Joe’s.

In multiple court cases, Musk’s lawyers have argued that the NLRB—the independent federal agency that (to quote the agency itself) “protects the rights of most private-sector employees to join together, with or without a union, to improve their wages and working conditions”—does not have the authority to regulate his anti-union manipulations. The most serious of these challenges, a lawsuit filed in Texas earlier this year by lawyers for SpaceX, claims that the NLRB’s enforcement proceedings violate the corporation’s constitutional right to a jury trial. The suit also claims that the restrictions on the removal of NLRB board members and administrative judges—which keep them free from political interference when administrations change—violates the Constitution’s separation-of-powers provision.

Challenges to the constitutionality of the National Labor Relations Act have been litigated before, with the courts generally disregarding the specious arguments of anti-union employers. In the most famous of these rulings, a 1937 US Supreme Court decision in the case of NLRB v. Jones & Laughlin Steel Corp., as former Secretary of Labor Robert Reich reminds us, Chief Justice Charles Evans Hughes, who ran as the Republican presidential nominee against Woodrow Wilson, held in 1937 that Congress had the constitutional authority to approve the act and to establish the NRLB to enforce its provisions. Now, says Reich, “modern-day robber barons Jeff Bezos and Elon Musk want the Supreme Court to reverse its 1937 ruling and return America to a time before workers had the right to form unions.”

Musk and Bezos could be dismissed as dead-enders refighting long-lost battles against FDR and the New Deal, but for the fact that Hughes has been replaced by the likes of Justice Samuel Alito, an anti-union zealot who makes no secret of his determination to overturn protections for workers and their unions. The modern Supreme Court has already undermined unions that represent public-sector workers, most notably with the 2018 decision Janus v. American Federation of State, County, and Municipal Employees. Does anyone seriously doubt that the court majority wants to make it harder for private-sector workers to organize, bargain, and engage politically? Nelson doesn’t. Alito, she says, has “been building the case for this for years.” Since 2012, when he wrote the majority opinion in Knox v. Service Employees International Union, Alito has established a pattern of advocacy that suggests that he—and presumably his conservative colleagues—are on the hunt for cases that could weaken a resurgent labor movement.

Musk and Bezos have the anti-­union animus, and the billionaire resources, to fight this legal battle for years, and potentially to get it to the Supreme Court. They might be tripped up by a lower court, or by a split among the high court’s conservatives. But US Representative Mark Pocan, a cochair of the Congressional Labor Caucus and one of the few dues-paying union members in the House, says, “This is a huge threat, because Musk and Bezos are…trying to work through the courts rather than the legislative process. If they succeed, they could do incredible damage to worker rights.”

Were the high court to upend the National Labor Relations Act, Pocan argues, a motivated Congress could enact new protections for workers and unions, and the Senate could fill judicial vacancies with worker-friendly jurists. For that to happen, though, pro-labor Democrats would have to control the House, the Senate, and the presidency. “This is just another reason why the 2024 election matters,” Pocan says. “If we don’t have members of Congress who are willing to write rules that protect workers, and…members of the Senate who are prepared to confirm judges and justices who respect the rights of workers, these billionaires could get their way.”

Support independent journalism that exposes oligarchs and profiteers


Donald Trump’s cruel and chaotic second term is just getting started. In his first month back in office, Trump and his lackey Elon Musk (or is it the other way around?) have proven that nothing is safe from sacrifice at the altar of unchecked power and riches.

Only robust independent journalism can cut through the noise and offer clear-eyed reporting and analysis based on principle and conscience. That’s what The Nation has done for 160 years and that’s what we’re doing now.

Our independent journalism doesn’t allow injustice to go unnoticed or unchallenged—nor will we abandon hope for a better world. Our writers, editors, and fact-checkers are working relentlessly to keep you informed and empowered when so much of the media fails to do so out of credulity, fear, or fealty.

The Nation has seen unprecedented times before. We draw strength and guidance from our history of principled progressive journalism in times of crisis, and we are committed to continuing this legacy today.

We’re aiming to raise $25,000 during our Spring Fundraising Campaign to ensure that we have the resources to expose the oligarchs and profiteers attempting to loot our republic. Stand for bold independent journalism and donate to support The Nation today.

Onward,

Katrina vanden Heuvel

Editorial Director and Publisher, The Nation

John Nichols

John Nichols is a national affairs correspondent for The Nation. He has written, cowritten, or edited over a dozen books on topics ranging from histories of American socialism and the Democratic Party to analyses of US and global media systems. His latest, cowritten with Senator Bernie Sanders, is the New York Times bestseller It's OK to Be Angry About Capitalism.

More from The Nation

Daniel Trujillo, 17, sits in front of the Supreme Court.

Trans Kids Are Facing a Terrifying New Reality Trans Kids Are Facing a Terrifying New Reality

The nationwide drive to eliminate gender-affirming care has trans youth and their families contemplating a series of agonizing choices.

Matthew Herskowitz

Eric Schmidt, David S. Cohen, General Mark A. Milley, Alex Karp, and Andrew Ross Sorkin speak for The Ash Carter Exchange on Innovation and National Security panel during the AI Expo for National Competitiveness on May 7, 2024, in Washington, DC.

At This Point, Silicon Valley Militarists Aren’t Just Greedy—They’re Bloodthirsty At This Point, Silicon Valley Militarists Aren’t Just Greedy—They’re Bloodthirsty

By all means, let’s unite around a common purpose. But that purpose shouldn’t be a supposedly more efficient way to build killing machines.

William D. Hartung

University of Austin founder Bari Weiss interviews Texas GOP Senator Ted Cruz at a DC inauguration-weekend event cohosted by Weiss's publication The Free Press.

How a Free-Speech University Sidles Up to Orbán’s Strongman Rule How a Free-Speech University Sidles Up to Orbán’s Strongman Rule

Bari Weiss's University of Austin, touted as a haven for free academic inquiry, has a dozen scholars and officials with ties to Hungary's speech-suppressing regime

Jacqueline Sweet

Kathy Hochul, center, governor of New York, center, displays signed legislation designating New York State as a safe haven for trans youth and physicians before the NYC Pride March in New York, US, on Sunday, June 25, 2023.

Our Trans Protections Aren’t Strong Enough for the Trump Era Our Trans Protections Aren’t Strong Enough for the Trump Era

Many states have passed so-called “shield laws” to protect trans people. But they weren’t designed for a presidency like Donald Trump’s.

Emmet Fraizer

Texas Attorney General Ken Paxton speaks at a news conference in Dallas on June 22, 2017.

Texas Charges a Midwife in the First Arrest Under the State’s Abortion Ban  Texas Charges a Midwife in the First Arrest Under the State’s Abortion Ban 

Local advocates say the arrest is an attack on not just abortion care but also immigrant communities.

Mary Tuma

A statue modeled after the Statue of Liberty holds up a cross instead of a torch with “America Return to Christ” outside of World Overcomers Church in Memphis, Tennessee, on January 7, 2018.

The Battle of Theologies in the Age of Trump The Battle of Theologies in the Age of Trump

Trump and his people target those that the Bible is most concerned about: children, the poor, immigrants, the sick and disabled, women, the vulnerable, and the earth itself.

Rev. Dr. Liz Theoharis