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SpaceX Techs Pressured To Fake Rocket-Part Tests, Jury Told

By Bonnie Eslinger
Law360, Los Angeles (May 24, 2017, 10:37 PM EDT) -- A SpaceX employee testified Wednesday in his California wrongful firing trial that he told a human resources official that managers were pressuring workers to falsify test documents, and he wanted to talk to CEO Elon Musk directly “because managers were blocking my feedback on this.”
Jason Blasdell worked as a SpaceX technician from November 2010 until April 2014, testing avionics components of the Falcon 9 rocket, and received positive performance reviews, according to his suit. That changed after he told company officials, including CEO Elon Musk, that technicians were being pressured to deviate from test procedures, falsify the results and sign off on the improper testing, according to his complaint.

On the second day of his Los Angeles trial, Blasdell testified that about six months before his firing he spoke to Human Resources Manager Carla Suarez and told her that he was having difficulties with his supervisors.

“I told her that in the avionics test lab that managers had been pressuring us, pressuring me, to falsify test documents. And that management is trying to point to me as being the problem instead of acknowledging and discussing actual falsification of documents as being the real problem,” Blasdell told jurors. “I told Carla because of that. it was important that I speak to Elon Musk personally because managers were blocking my feedback on this.”

Blasdell added that by this time he had already moved up the chain of command with his testing concerns, including meeting with company President Gwynne Shotwell.

The former SpaceX worker’s attorney, Carney Shegerian of Shegerian & Associates Inc., asked the plaintiff if he felt that by falsifying test results he was violating the law.

“Absolutely,” Blasdell said.

His supervisors would chastise him, Blasdell testified, saying other technicians weren’t having problems completing and signing off on the tests.

“It wasn’t because I was incapable or lacked knowledge or experience in performing the test. It was, I was adhering to company rules as difficult as it was,” Blasdell said. “I knew I’d get negative attention for it. I tried to convey to them, I’m not the problem. We have a bigger problem.”

The worker said he was particularly concerned because SpaceX had begun working on rockets under a NASA contract and company employees had been told to carefully document their testing.

During opening statements, Shegerian called SpaceX a “very ambitious company” that was growing quickly, cutting corners and having “significant issues in terms of documenting testing procedures” on its rocket parts.

Although the parts were failing the tests for various reasons, “the defendant would require, by pushing and cajoling, 'just pass anyway,’” Shegerian said of SpaceX.

When Blasdell — who Shegerian said had been extensively trained in aviation electronics as a Marine — became concerned about SpaceX’s testing procedures, he did what the company’s ethics code required and brought his observations to his higher-ups, according to Shegerian.

Company officials responded by labeling him “disruptive,” “a chronic complainer,” “troubled” and insubordinate, jurors were told.

Jurors were shown an email in which a manager told Blasdell that it “took a lot of balls to go out on a limb like you did,” but asked him to keep their discussion confidential, “since it could result in my termination.”

When Blasdell sat down with Shotwell to explained to her how the test results failed the company president told him not to tell Musk.

“Her exact words were, ‘Don't tell Elon, do not tell Elon. If he finds out about this, we will all get fired’,” Shegerian said.