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Amazon and SpaceX are spearheading a corporate challenge to the National Labor Relations Board (NLRB), the federal agency tasked with protecting workers' rights since its establishment in 1935.
Attorneys for both companies will present their cases to the Fifth Circuit Court of Appeals, arguing that the agency's structure violates the Constitution.
If successful, the lawsuits could significantly restrict the NLRB's ability to enforce labor law, making it harder for workers to organize unions and collectively bargain for better conditions. The move would mark a dramatic shift after nearly four years of robust pro-labor policies under the Biden administration.
Corporate pushback against NLRB
Amazon and SpaceX initiated their lawsuits after the NLRB issued complaints against them. Amazon, headed by Trump supporter Jeff Bezos, was accused of refusing to negotiate with the Amazon Labor Union, which organized workers at its Staten Island warehouse in 2022, while SpaceX has been accused of firing eight employees for criticizing CEO Elon Musk.
Both companies argue that the NLRB wields excessive power by acting as prosecutor, judge, and enforcer in labor disputes, with only limited judicial oversight. SpaceX also contends that the NLRB's administrative law judges and the inability of the president to fire board members infringe on constitutional principles, including the right to a trial by jury.
"The NLRB routinely exercises authority...with only limited judicial review," SpaceX said in its filing.
Political context and future implications
The cases come as President-elect Donald Trump prepares to take office, with a plan to reduce government oversight.
Elon Musk and former Republican candidate Vivek Ramaswamy were his pick to lead a commission (The Department of Government Expenditure or DOGE) focused on cutting bureaucracy and spending. While it remains unclear if the NLRB is a target, labor advocates are bracing for substantial changes under the new administration.
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Jennifer Abruzzo, the NLRB’s general counsel appointed by President Biden, has taken an expansive approach to labor protections, including a recent ruling banning mandatory anti-union "captive audience" meetings.
Trump is expected to remove Abruzzo immediately upon taking office, just as Biden did with Trump appointee Peter Robb on his first day.
Robb, a staunch advocate for employers during his tenure, may serve as a blueprint for Trump’s likely replacement for Abruzzo, signaling a shift in enforcement priorities.
High stakes for employees
Workers' groups fear that rulings in favor of Amazon and SpaceX could set a precedent for undermining labor protections nationwide and halting the progress that has seen.
Abruzzo has warned of potential "chaos" if the NLRB’s ability to enforce labor law is curtailed, while acknowledging the importance of accountability for employers who violate workers’ rights.
The challenges to the NLRB’s authority could eventually reach the Supreme Court, further raising the stakes for labor law enforcement in the US.
With labor protections under threat from the incoming administration, further friction between anti-union employers and employees in the form of strikes and legal challenges is expected.
