AMAZON AND ELON MUSK'S SPACEX CHALLENGE LABOR AGENCY'S CONSTITUTIONALITY IN FEDERAL COURT

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

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

A ruling in favor of the companies could immensely diminish – or paralyze – the nearly century-old agency, which is tasked with enforcing labor laws and settling labor-related complaints workers lodge against their employers. The issue may eventually reach the U.S. Supreme Court, which has a conservative majority and has issued rulings curbing the power of government agencies.

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

A lawyer for the NLRB emphasized during the hearing that both companies filed their appeals after lower courts did not give rulings by requested deadlines.