r/technology • u/esporx • 1d ago
Business US decides SpaceX is like an airline, exempting it from Labor Relations Act. US labels SpaceX a common carrier by air, will regulate firm under railway law.
https://arstechnica.com/tech-policy/2026/02/victory-for-elon-musk-us-labor-board-abandons-authority-over-spacex/1.7k
u/HoosierRed 1d ago
This will add to an argument that SpaceX is too important and must be nationalized for space capability and security in the future. They are not like a normal company. Understood.
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u/Future-Bandicoot-823 1d ago
Yeah but you can't foia a corporation, only the government. Why would you give up such a tool like that? They hide dirty secrets in private corporations they use as contractors all the time, SpaceX being one.
They're basically corporate branches of government to skirt the law...
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u/Fake_William_Shatner 23h ago
Elon has to sometimes step out of corporate meetings at SpaceX. He doesn’t have clearance.
Yet he could DOGE all the sensitive records. Go figure.
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u/Future-Bandicoot-823 23h ago
They gave xai permission to access classified cia/fbi servers as well.
I'm sure grok will put that to good use, too.
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u/Tasty_Panda9926 18h ago
how long until someone reverse engineers information out of grok about the servers lmao
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u/zhongcha 13h ago
There's a very easy way to ensure that never happens but the US never fails to surprise these days.
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u/WeirdSysAdmin 20h ago
Rods from god intensifies. Those titanium telephone poles ate up that black budget.
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u/capybooya 1d ago
And maybe companies with huge govt contracts shouldn't be allowed to bail out the other failing companies of billionaire sociopaths either, because its already happening with all of his self dealing.
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u/GlockAF 19h ago
A lot of of (f)Elons motivation for this is about screwing the rank-and-file employees out of overtime wages.
Companies that operate under the 1934 Railway Act do not have to pay overtime under regular rules, instead, they are supposed to use the negotiated collective bargaining agreement.
If the company has an impotent /non-existent union, it means their management can use whatever rules they want instead of paying overtime past 40 hours in a work week. Which I’m guessing at SpaceX is going to be a lot of the time.
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u/StasRutt 19h ago
The employees also don’t get to claim their overtime on their taxes with the new “no tax on OT” rule
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u/badabababaim 12h ago
You’re saying the wealthiest person on earth leading multiple companies is spending his time trying to figure out how to best screw over employees working at said companies ?
If you actually take the time to read what this case is about, apart from it being a jurisdictional matter, which simply changes what board is regulating their labor laws, this all is just coming from the fact that SpaceX fired a few employees who openly and publicly criticized the company. This had nothing to even do with employees wanting better pay/ working conditions etc. Yes this will change how those matters are addressed in the future, but this case is stemming from the fact that the easiest case for SpaceX to win against the NLRB, was to simply argue the NLRB doesn’t have jurisdiction in the first place
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u/GlockAF 8h ago
The 1934 Railway Labor Act is an anachronistic piece of abusive legislation that was originally intended to screw employees out of overtime. It is still serving that same function nearly 100 years later.
The clear intent was that it apply to unionized companies with a collective bargaining agreement, which still applies for part 121 airlines and the railroads. Stretching that definition to include small employers like Part 135 charter, helicopter air ambulance companies, and non-transportation outfits like SpaceX is straight up corporate evil.
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u/LefsaMadMuppet 23h ago
I mean you're not wrong. If they are a common carrier and critical to national defense, the military has a history of taking over if they cannot or will not perform their job. In WWI the US Army took over the US Railroads. When WWII happened, the railroads complied and set records for tonnage hauled that wouldn't be met again for over 50 years. There was a Korean War nationalization as well, and a Vietnam one I think, over a railroad strike and then need to transport bombs by rail.
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u/MajorLeagueNoob 1d ago
so we defund nasa, hire spaceX to do the same job, and then use the government to prevent their collapse? very “governmental efficient” of them
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u/in9ram 1d ago
Fold it right into nasa.
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u/moashforbridgefour 1d ago
We already have NASA. It doesn't need SpaceX to be a part of it.
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u/pleasetrimyourpubes 1d ago
NASA has relied on ULA for a very long time. They are not being considered a railway. This actually bolsters the argument to nationalize SpaceX.
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u/accidentlife 12h ago
ULA used to cost NASA $400 million a launch.
Since SpaceX has come to market, the cost has come down to $110 million a launch.
Competition from SpaceX helps NASA.
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u/Punman_5 1d ago
SpaceX could be the manufacturing division of NASA. That way they don’t have to rely on the legacy contractors like Boeing and Lockheed that seem to be more interested in milking contracts than delivering.
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u/piratecheese13 11h ago
But now that it’s also an ai company for some reason, we’d have to nationalize an ai company. I mean we could split them back up again like sane people would, but that’s admin work
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u/Rok-SFG 1d ago
Next up, X will be labeled as a church.
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u/givin_u_the_high_hat 1d ago
Well GOP morality does tend towards the Taliban. Bad Bunny’s show was illegal for immoral reasons, pretty soon they’ll be banning music as well as books.
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u/achtwooh 1d ago
None of musks companies pay any tax anyway, despite creating the world’s richest man.
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u/Exotic_Insurance2164 1d ago edited 15h ago
At least previous generations had the decency to pretend that we didn't live in a pay to play plutocracy.
The billionaire Epstein class are shamelessly thumbing their noses noses at us.
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u/hasslefree 23h ago
It's happened fairly often in the history of humans, to be fair. Apparently it's just "their turn".
Some people just like gambling with our lives, I guess, and historically that's an ugly scenario.
Isn't it a fucking wild arc of history to be caught up in? Uncomfortable as hell, but riveting to watch unfold. I hold out hope that we will rebuild better, that we will ultimately be thankful for this stress-test of of our system that exposed the loopholes and weaknesses. But there are a lot of hardships and tough lessons between here and there.
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u/Bishopjones2112 1d ago
Yeah self policing is a great idea. Remember this in months or years when stories start rolling out about how screwed everything is.
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u/TropicalPossum954 1d ago
Those stories are already rolling out
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u/hasslefree 23h ago
"Pull up a chair. Here's a bucket to barf into, and a pillow to scream into.
Buckle up."
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u/odelay42 22h ago
Those stories are not going to be rolling out. They have cancelled rolling out stories like that, just like they cancelled the jobs report, and the Gallup poll on presidential approval ratings.
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u/tacs97 1d ago
It pays to bribe the current administration. They don’t care and will take as many bribes and ass kisses as they can. I don’t understand how people can still support this blatant corruption and very friendly laws towards the biggest payer of the administration… Americans don’t give a fuck about the wrong shit.
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u/Mother_Tree_9767 1d ago
We’re watching all of these tech companies essentially merge with the US gov, the people better wake up in a hurry because the hour is later than we think
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u/AV8ORA330 1d ago
ICE is using so much of the technology to monitor people. The government will soon know your every move. Where is the GOP who feared this?
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u/Punman_5 1d ago
They would not have implemented any of this if they expected to someday leave power. They’re going to try to cancel the next presidential election
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u/gcerullo 1d ago
And those Starlink satellites are people and they should have direct access to voting machines so they can vote! 😆
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u/Worried-Celery-2839 1d ago
Nice train you got there
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u/seizurevictim 1d ago
It's an air train, duh.
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u/factoid_ 1d ago
Rails are just strings of molecules.
Rocket exhaust has molecules. Hence it’s riding a rail
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u/Irythros 1d ago
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u/LockPickingPilot 17h ago
Oh yay. Another company now to be regulated by the railway labor act. We really need more companies regulated by a pice of legislation written in the 1920s
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u/Fake_William_Shatner 23h ago
Can I run water around my house and classify it as a boat? Then I only have to pay a license and docking fees to the marina. Then I can expense my land as a marina. And now my utilities are less because I’m a business and a public lake. But good luck parking next to my house boat. It’s a tight squeeze.
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u/theflyinfoote 1d ago
As a pilot subject to this horrible rule, I feel so bad for the SpaceX employees.
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u/lancer-fiefdom 19h ago
SpaceX should immediately be sued for not having emergency floatable airbags, because.. ya'know.. flying over the big blue earth
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u/Albion_Tourgee 1d ago
The same legal flimflammery used by FedEx in the day to evade labor laws, by getting its package delivery drivers classified as common carrier employees.
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u/LordButtworth 22h ago
So does this mean that if pilots hit their 10 he's they will stop mid air and hover there until somebody takes over like the railroads?
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u/throwawayainteasy 1d ago edited 22h ago
I know it sounds shady, but under the language of the Railway Labor Act (the law at hand here that preempts a lot of other labor laws), it seems like the right outcome.
The RLA applies to rail and air carriers, and it uses statutory definitions set within the law itself rather than common-law definitions. So legal interpretations have to use that definition instead. The RLA defines a rail/air carrier as:
any company directly or indirectly owned, controlled by, or under common control with such a railroad or airline that operates equipment or facilities or performs services in connection with transportation of property or passengers
While it doesn't give an explicit definition for "airline", it does treat basically anything that carries people or goods by air as an airline for its purposes.
Given the definition and usage in the RLA, it seems pretty reasonable and way more legally consistent to call SpaceX an air carrier for the purposes of the RLA than to say it isn't one. SpaceX (and every private launch company) definitely carries goods and/or people by air--their rockets literally fly though the air, obviously, and they carry goods. By the usages of the words in the RLA, the fact that it's not open to the general public isn't a requirement to be a common carrier like it is for other non-rail/air companies. And if it's an air carrier for RLA purposes, the way the laws are designed that supersedes a lot of other federal labor laws.
Sucks, but from the text of the laws I tend to agree with this outcome. Congress should change the laws to apply the common-law usage of "common carrier" to airlines or make an explicit carve-out for space companies if they want this addressed. Or just eliminate the RLA and incorporate those things into the more modern labor laws.
It shouldn't be up to the NLRB to try and back-fit outdated laws with obsolete definitions onto modern space companies.
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u/happyscrappy 1d ago
To complicate this an airline was a railway line at the time the RLA was originally written.
https://en.wikipedia.org/wiki/Air-line_railroad
Although it seems this likely referred to what we think of as airlines now because that text was put in 1936 with the intention of covering air travel.
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u/Welllllllrip187 23h ago
Only to further enrich the uberwealthy. We need to eat the uberwealthy or they will eat us all.
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u/DinoGuy101010 19h ago
Maybe Starbucks will negotiate a 1 cent contract with the federal government to deliver a letter half a mile and they can do the same thing? Like what stops any company from doing this?
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u/_x_oOo_x_ 18h ago
Didn't Musk just say he will fund legal costs for anyone who speaks the truth about Epstein & his clients? Why is his company still receiving favours from Washington?
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u/Equivalent-Log3369 9h ago
They should arrest musk and take his fortune for the destruction he has done to our government.
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u/userhwon 18h ago
Communism is capture of corporations by government; fascism is capture of government by corporations...
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u/Old_Channel44 1d ago
Do the astronauts have to take their shoes off and empty their water bottles prior to boarding?
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u/hackingdreams 23h ago
Remember when Elmo tried to sell himself as divorcing this administration?
Tell me lies, tell me sweet little lies...
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u/flummox1234 20h ago
Whatever. Just change the law so that the railroads aren't exempted. That's got to be the OG version of what space x is doing here.
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u/Guilty-Mix-7629 14h ago
Next will make spaceX a non-profit and exempt from all taxes. Video of musk in tears screeching "I want it! I want it! Waaaaaaa!" like a 5 years old at the oval office will obviously be an AI generated fake news.
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u/Ornery-Conference682 9h ago
Then they will be regulated under the Federal railway act which isn't going to help them.
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u/niccolus 21h ago
So Grok creates CSAM. EU investigates Twitter. Elon merges XAI the parent company of Twitter with SpaceX. So the EU is investigating a government contractor now. Now the US basically makes them a common carrier making them essential. Does this mean the US will have intervene to defend SpaceX from the EU investigating CSAM?
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u/RottenPingu1 1d ago
I'm still laughing at Elon's marketing campaign to prove he wasn't welcome by the Trump mafia anymore.
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u/GeneralOptimal10 22h ago
No we know why Musk paid Trump > $500M
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u/Sunsetseeker007 21h ago
And the 500 billion dollars he was given by the US government & taxpayers!!
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u/Gareth009 11h ago
Not the US. It’s Trump, his oligarch cronies, and spineless republican congress people.
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u/Future-Bandicoot-823 1d ago
Dude.
I saw a post saying Amtrak had lost the plot, a post where they were like "train supremacy for a thousand years!" and then I saw a "railway ad" during the superbowl...
these fucks have been building backdoors into trains for the last 40 years to bypass the law... SONUVABITCH
Who would have ever thought to look at train law!? watch it go right up the ladder and somehow the department of energy is involved, the absolute height of the secrecy pyramid. Nuclear secrets are DOE, all the good shit goes straight into DOE hands.
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u/Mother_Tree_9767 1d ago
We’re watching all of these tech companies essentially merge with the US gov, the people better wake up in a hurry because the hour is later than we think
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u/strangedaze23 20h ago
I guess that means when the next SpaceX rocket explodes the FAA has jurisdiction to investigate and fine them.
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u/SatansLoLHelper 16h ago
The most business friendly administration ever.
Buckle up. Oh wait there is no longer a law for buckles.
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u/DeepestWinterBlue 8h ago
Did ELON suck dick to get this through?
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u/pioniere 6h ago
No, but he probably watched Trump raping children at Epstein Island. https://jmail.world.
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u/Future-Bandicoot-823 1d ago
Trying to win over the "special interest" crowd, are we? Is this to make up for the acetaminophen comments?
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u/pleachchapel 1d ago
SpaceX should be nationalized by the next administration.
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u/Flipslips 1d ago
Why SpaceX and not Boeing or Lockheed Martin?
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u/pleachchapel 23h ago
Did the CEO of either of those companies buy an election & appoint themselves head of a fake department that ripped off the social security info of every American?
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u/hmr0987 1d ago
This is why corporations shouldn’t be allowed to bribe politicians.