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Amazon and Elon Musk’s SpaceX are challenging the constitutionality of the labor agency in federal court
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Amazon and Elon Musk’s SpaceX are challenging the constitutionality of the labor agency in federal court

By HALELUYA HADERO

Lawyers for Amazon and Elon Musk’s SpaceX argued in a federal appeals court Monday that National Council for Labor Relations structure is unconstitutional, advancing a legal battle that could last into the Trump administration, where Musk is expected to oversee bureaucratic cost cutting.

A panel of three judges at 5th US Circuit Court of Appeals in New Orleans, heard separate oral arguments in the SpaceX and Amazon lawsuits, which two initiated companies after the labor agency filed complaints against them in workers’ rights and union organizing disputes.

A ruling in favor of the companies could diminish — or paralyze — a nearly century-old agency tasked with enforcing labor laws and making settlements. complaints related to work workers file against their employers. The issue may eventually reach the U.S. Supreme Court, which has a conservative majority and has issued rulings limiting the power of government agencies,

The three appeals judges who heard Monday’s arguments questioned Amazon and SpaceX’s legal maneuvering to take their cases to the 5th Circuit, where jurists appointed by Republican presidents dominate the appeals court.

An attorney for the NLRB pointed out during the hearing that both companies filed their appeals after the lower courts did not rule on the requested deadlines.

Michael E. Kenneally, a lawyer for SpaceX, countered that the government “relied so heavily on procedural objections” because of the alleged weakness of its legal case, a claim that drew some pushback from the panel.

“It seems to me that the ‘procedure doesn’t matter if I win on the merits’ argument,” said Judge James E. Graves Jr., appointed by former President Barack Obama.

SpaceX, Musk’s space technology company, filed a lawsuit against the NLRB in January after the labor agency accused the company of illegally firing employees who wrote an open letter critical of Musk and creating the impression that workers’ activities were monitored.

Among other claims, the company argued in its complaint that the agency’s procedures deprived it of its right to a trial by jury.

Musk, the world’s richest person, has become more influential in recent months after pumping about $200 million through his political action committee to help elect Donald Trump as president.

After being elected, Trump tapped Musk and former Moldovan presidential candidate Vivek Ramaswamy to lead a new efficiency commission focused on reducing costs at the federal government level. Musk said the new administration will have a “mandate to clear away the mountain of stifling regulations that do not serve the greater good.”