Former executive accuses group CEO of bullying in multi-million dollar lawsuit
The chief executive of a startup that launches rockets for NASA is in hot water over allegedly making sexist comments about women and racist remarks about Indigenous Australians.
Carley Scott, former head of Equatorial Launch Australia (ELA), has filed a $4.8 million lawsuit against the company in which she accuses group chief executive Michael Jones of bullying her out of her job, according to a report by The Australian Financial Review. Scott said Jones humiliated her over “baseless” performance concerns and made rude and discriminatory comments to her.
Among Scott’s allegations is that Jones told her during a meeting that he understood it was “absolute genius” for a man to claim temporary insanity for beating his wife to death, as everyone would understand that she drove him crazy.
In another incident, while visiting Arnhem Land, Jones allegedly called Scott a “socialist” and criticised her for showing support for Indigenous Australians. Jones allegedly told Scott “there’s too much spending on Aboriginal people; they get enough and are still crying poor.”
The lawsuit comes on the heels of ELA’s successful launch of commercial rockets with NASA from Arnhem Land in July. The Northern Territory government has so far invested $5 million in the firm, according to AFR.
Scott, an alumna of AFR’s 100 Most Influential Women list, joined ELA in 2019 as CEO at a salary of $250,000, with the promise of millions of dollars in convertible notes if investment milestones were achieved.
However, according to the lawsuit Scott filed in the Federal Court, Jones – who was then ELA chair – allegedly told a board candidate in September 2021 that “new investors are very concern[ed]” about Scott’s “ability to deliver.” He also allegedly told ELA founder Scott Wallis that she was like a “deer in the headlights” on site development. During a meeting with others, Jones allegedly told Scott without basis that “I don’t know what you’re doing day to day.”
He also allegedly told Scott that if he were an investor, he “would have told you, ‘go and get f—d.’”
Scott also detailed several other racist and sexist comments Jones allegedly made. He allegedly called Scott “left wing” and argued there was too much spending on Indigenous Australians, saying that “if you mother them, you just create more mothers.”
Referring to his arrival in Darwin one day, he allegedly said, “I can feel my IQ dropping already. Do I have to speak slower now?”
He also allegedly told Scott during a meeting that she was “part of the school of women club.”
“Why do you think so many women get murdered before and after [Family Court cases]?” Jones allegedly said. “It’s the frustration the guys have that they’re getting screwed.”
By October 2021, Jones was allegedly excluding Scott from meetings with accountants and directors – including meetings having to do with a proposed restructure that would effectively demote her by requiring her to report to Jones as the new group CEO, AFR reported. Scott refused to sign a revised contract during the restructure and took leave while applying to the Fair Work Commission for stop-bullying orders.
Scott was fired in March in what she claims was unlawful adverse action because she exercised her right to complain about bullying.
A spokeswoman for ELA told AFR that the company could not respond since Scott’s claims are “presently before the court.” However, she said the company would bring its own claim against Scott for her alleged conduct in her job.
“ELA’s defence and the associated counterclaim against Ms Scott as to her conduct during her employment and directorship with ELA is to be filed and will be tried on the timetable set by the court,” the spokeswoman said. “The defence and counterclaim will be vigorously pressed in the court.”
